Atos SE (EPA:ATOS) shares fell dramatically on Tuesday as the French information technology consulting firm announced a proposal to spin off its core Big Data and cybersecurity operations, as well as the upcoming retirement of its CEO, in an effort to reverse a string of recent losses.
The planned restructuring would result in the listing and distribution of shares in the spun-off group by the end of 2023, according to a statement from Atos. In addition, the professional services section of Atos would become a separate publicly traded company.
The corporation noted that the plan would need an anticipated total investment of around €1.6 billion for the years 2022-2023.
Bertrand Meunier, chairman of Atos, said that the company’s board of directors is satisfied that the proposed proposal, presented by management today, is the best feasible for the Group and would produce the most value for all Atos Stakeholders.
During Tuesday’s Capital Markets Day, the company’s upper management is scheduled to provide further information about this plan.
In a separate statement, Atos revealed that its current CEO, Rodolphe Belmer, would depart the business in September, barely six months after assuming his position. The resignation comes after weeks of media speculation about a dispute between Belmer and the Atos board over the cybersecurity division’s strategy. The apartment was apparently being considered for sale by Belmer.
After a failed attempt to acquire a U.S. firm, a profit warning for 2021, and accounting irregularities eroded investor trust, Belmer was first hired to oversee a rescue effort.
Approximately the last year, Atos’s stock price has declined by over 60 percent.