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Graphisoft to split IT and real estate activities

Architectural software company Graphisoft Rt announced on Wednesday it plans to put its real estate activities into a separate company and offer its shareholders shares in the new company, which it will then list on the stock exchange.

The board will put the initial proposal to shareholders at the company's AGM on April 28, and the final plan will be submitted for shareholder approval at an EGM in June, allowing the entire procedure to be completed by year-end. Trading in Graphisoft shares was suspended on the Budapest Stock Exchange (BÉT) from the start of the session until noon on Wednesday because of the announcement.
The board will propose putting 48% of Graphisoft's net assets, or €21.3 million, into Graphisoft Park, a property development company which would operate the company's business and research park of the same name. The remaining net assets of €23.2 million would remain with Graphisoft, which would continue to carry out software development activities.
The board said the measure would be better for business and would boost investor interest in both companies' shares and that it would propose listing the Graphisoft Park shares at the first AGM of the company in September 2006. The board also said the change was necessary because Graphisoft's real estate business needs financing which is separate from that of the IT business.
Shareholders in Graphisoft will be issued shares in Graphisoft Park in proportion to their holdings or be given compensation equal to the net assets value per share. Shareholders who do not wish to accept the Graphisoft Park shares may instead opt to receive compensation of €2.1 per share, while shareholders who do not wish to keep their stakes in Graphisoft will be offered €2.3 for each of their shares according to the board proposal.