We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

Logica to exit FTSE on 24 August


All of Logica's directors will also will also stand down on 21 August

Article comments

CGI Group, which bought Logica for £1.7 billion in May, confirmed the company will exit the London Stock Exchange on Friday 24 August.

All of Logica's executive and non-executive directors will also stand down on 21 August, according to a stock market bulletin, after CGI's acquisition of the software and information technology services company becomes effective on 20 August.

Last month, Logica’s shareholders voted overwhelmingly in favour of accepting CGI’s recommended cash offer of 105 pence per share. Canada's CGI said it expects to receive annual benefits of £125 million by the end of the third financial year following completion of the sale.

“We will immediately start the process of successfully integrating the two businesses to create a global technology services leader with 72,000 professionals,” said Michael E Roach, president and CEO at CGI, at the time.

However, the deal has been heavily criticised by analysts, who stated that CGI would not be able to create a new global business by integrating Logica’s European operations.

TechMarketView analyst Anthony Miller said that today's news begs the question as to who will be around on 22 August to open the shutters at Kings Place.

“CGI needs to make the handover as 'seamless' as possible in these circumstances,” he said. “We would suggest that an external announcement on who will run CGI Logica (and how) is required sooner rather than later.”

Earlier this year the Government Procurement Service announced that it had signed a four-year deal with Logica, worth £500 million, to provide HR, finance and IT services in a bid to centralise procurement.

Share:

Comments

Logica to exit FTSE on 24 August
Governance

What makes a good board report?

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..


FRC consults on governance code

The watchdog is looking at clawback clauses among other governance issuesmore ..

Review to blame weak governance at Co-op bank

The Kelly Review will pinpoint the Britannia building society takeover as the main problem at the bank, the BBC claimsmore ..

Vince Cable plans to unmask hidden company owners

A public register of company owners will be created whichpolice and tax authorities can usemore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Corporate governance: A catalyst for innovation

Corporate governance is a powerful tool in a C-suite executive’s arsenalmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Do you have what it takes to become a non-executive?

Do you have what it takes to become a non-executive?

The benefits of board service for CFOs more ..

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

Advertisement

* *