Sema-Paribas link to end

By THIS IS MONEY
Updated:

 

Anglo-French computer services company Sema Group said today its relationship with founding shareholder French bank Paribas may soon come to an end.

Paribas, which helped create Sema in 1968, was recently taken over by Bank Nationale de Paris. Paribas' stake in Sema has steadily declined to 10% in the past three years and the remainder may be on the market soon.

'It is not like in the past when Paribas was a historical parent of Sema so perhaps Paribas will sell. If they stay, okay, or if they sell, okay, but we think they may sell,' said a Sema executive.

The sale could come as Sema seeks greater access to a US market from which it was banned until it lost its Paribas subsidiary status in 1997.

It opens a data recovery service in New York this month and has a telecoms operation in Atlanta, but is still looking for a key US purchase for up to $1 billion. Meanwhile, growth in Europe remains robust. Pre-tax profits to 30 June rose 35% to £38.5 million on sales 25% ahead to £669 million. The dividend rises to 1.03p from 0.84p. The order book stands at a record £1.8 billion, and with more big deals in the pipeline the millennium bug is having no discernible impact on business.

Telecoms-related revenues were hit but group performance was underpinned by strong demand from clients in the finance, transport and public sectors.

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