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ABB to Divest Cable Business to NKT Cables

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By Dipo Olowookere

NKT Cables is acquiring ABB’s global high-voltage cable system business with a total enterprise value of 836 million euros (US$934 million). High voltage cables are key components in sustainable energy networks, used for transmitting large amounts of electricity over long distances. The business is part of ABB’s Power Grids division, which is currently undergoing a strategic review.

NKT Cables designs, manufactures and supplies power cables for low-, medium- and high-voltage solutions mainly in the Alternating Current (AC)-area. It has major production facilities in Europe and China as well as sales offices around the world, and employs around 3,200 people. In 2015, revenue was 1.2 billion euros.

“We are combining two strong cable portfolios rooted in a shared Nordic heritage that will be more competitive on a larger scale under NKT Cables’ ownership, while maintaining access to supply through a long-term strategic partnership,” said ABB CEO Ulrich Spiesshofer.

“The combination of our niche cable system business with the strength of NKT Cables demonstrates our commitment to active portfolio management, a key element of our Next Level strategy.”

ABB’s high-voltage cable technology and manufacturing as well as service footprint is highly complementary with NKT Cables’ activities, making the combined business ideally suited to serve the rising global demand for long-distance power transmission cable systems. The combined operational scale and reach of the two businesses is expected to lead to even better service for global customers.

“ABB’s high-voltage cable business will add considerable strength to our portfolio and bring us a world-class manufacturing operation. We will leverage the technology, domain competence and highly skilled workforce to grow this business,” said Michael Hedegaard Lyng, President and CEO of NKT Cables. “We look forward to ramping up our long-term partnership that will serve future projects all around the world.”

ABB’s cable system business offers turnkey solutions including design, engineering, supply, installation, commissioning and service. It had adjusted standalone revenues of US$524 million in 2015, employs around 900 people, and has state-of-the art manufacturing and R&D capabilities for high-voltage submarine and underground cables in Karlskrona, Sweden. The transfer of assets also includes a new, cutting-edge cable-laying vessel, currently under construction. With experience of over a century, the business serves a range of applications and has commissioned hundreds of alternating current and direct current links around the world.

“As part of the strategic partnership, ABB and NKT Cables will work together on future projects to access market opportunities in areas like sub-sea interconnections and Direct Current (DC) transmission links”, said Claudio Facchin, president of ABB’s Power Grids division. “This transaction will simplify and focus the Power Grids portfolio.”

The transaction is anticipated to close in Q1 2017, subject to regulatory clearances and fulfilment of the closing conditions. Goldman Sachs acted as exclusive financial advisor to ABB and Freshfields Bruckhaus Deringer as legal advisor.

ABB will report on the progress of its Next Level strategy, including the strategic portfolio review of its Power Grids division, at its upcoming Capital Markets Day on October 4, 2016.

ABB (www.abb.com) is a leading global technology company in power and automation that enables utility, industry, and transport and infrastructure customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in more than 100 countries and employs about 135,000 people.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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NVIDIA Invests in Cassava Technologies for Expansion

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By Modupe Gbadeyanka

A leading Artificial Intelligence (AI) computing firm, NVIDIA, has made an undisclosed investment in Cassava Technologies.

NVIDIA joins Cassava’s impressive roster of investors comprising Econet Group, British International Investment, DFC, Finnfund, Fund for Export Development in Africa (Afreximbank/FEDA), Gateway Capital, Google LLC, International Finance Corporation (IFC), Public Investment Corporation and Royal Bafokeng Holdings.

Cassava operates across Africa, the Middle East and Latin America through a strong portfolio of business units comprising Liquid Intelligent Technologies, Africa Data Centres, Liquid C2, Cassava.ai, and Sasai Fintech, all of which are leaders in their respective sectors.

The organisation will continue collaborating with its partners and customers on the continent and beyond, establishing it as a leading technology company of African heritage.

“Cassava is Africa’s leading technology company, driving the continent’s digital transformation with digital infrastructure and digital services.

“Securing this investment is an important milestone that we expect to unlock additional value from and catalyze the further expansion of our digital infrastructure and services to bridge the digital divide on the continent,” the chief executive of Cassava, Mr Hardy Pemhiwa, stated.

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Airtel Africa Foundation Boosts Digital Skills Development in Rwanda

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By Aduragbemi Omiyale

To deepen access to smartphones and digital services for underserved communities, Airtel Africa Foundation has joined forces with others to train some persons in Rwanda.

This aligns with Rwanda’s ambition to become a knowledge-based economy and complements national programmes such as Connect Rwanda.

The organisation is collaborating with the International Telecommunication Union (ITU), Rwanda Information Society Authority (RISA) and Cisco on capacity and digital skills development under the Digital Transformation Centres (DTC) Initiative.

The parties will bridge the digital divide and promote digital inclusion by providing free Internet connectivity and digital skills training to underserved communities in the country, in connection with the advancement of the 2030 Agenda for Sustainable Development.

ITU will provide digital skills training content to the DTCs under the Initiative along with other ITU regional capacity development activities. In addition, ITU will facilitate networking opportunities related to promoting digital literacy and inclusion, which will enable access to expertise and best practices.

It was disclosed that Airtel Africa Foundation, through Airtel Rwanda, would equip DTC locations with routers, Wi-Fi and data packages at no cost, ensuring the effective rollout of training and access to digital educational platforms.

According to the chief executive of Airtel Rwanda, Mr Sujay Chakrabarti, the collaboration marks a significant step forward in bridging the digital divide and empowering Rwandan youth with digital skills.

He described the partnership as “a powerful example of what happens when government, private sector, and international organizations come together to empower communities.”

“This partnership reflects our commitment to supporting national development goals and closing the digital divide through meaningful collaboration,” said the Head of Programs at Airtel Africa Foundation, Ms Esi Asare Prah, said on behalf of the chairman of the foundation, Mr Segun Ogunsaya.

“We are honoured to partner with ITU to bring this vision to life and contribute to Rwanda’s journey toward becoming a digitally empowered society,” he added.

Also, the Regional Director for International Telecommunication Union (ITU), Mr Emmanuel Mannaseh, said, “Our partnership with Airtel Africa Foundation begins in Rwanda, where we are joining forces to strengthen digital skills in underserved communities to advance connectivity. This initiative lays the groundwork for broader regional collaboration, as we aim to expand this work to other Digital Transformation Centres across Africa.”

On his part, the chief executive of Rwanda Information Society Authority (RISA), Mr Antoine Sebera, said, “What we are seeing here today is partnership in action. Statistics show that 900 million people in Africa remain unconnected, extra effort needs to be made to make sure that no one is left behind.

“This positions Rwanda a step ahead by being intentional to involve the youth. These centres are going to play a transformative role in educating the youth to leverage AI. Digital Transformation is driving the world and Africa or Rwanda cannot be left behind.”

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OpenAI Launches Browser to Compete with Google, Others

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By Faridat Yusuf

OpenAI, the creators of ChatGPT, has launched a new web browser called ChatGPT Atlas, powered by artificial intelligence (AI) and is said to be a big competition to Google Chrome and other browsers.

The new browser, which was announced on Tuesday, aims to change the way people search and browse online. Instead of typing keywords like on Google, users can just talk to ChatGPT inside the browser, and it will summarise information or even do tasks for them.

According to Reuters, OpenAI already has about 800 million weekly users on ChatGPT,  and with Atlas, the company is now trying to bring AI into people’s daily internet use.

Atlas allows users to open a ChatGPT sidebar in any browser window to summarise web pages, compare products or even analyse data from websites.

Business Post gathered that there is also an “agent mode” for people who pay for the premium version of the service. This feature lets ChatGPT perform online tasks, to make “improvements that make it faster and more useful by working with your browsing context.”

During the demo, OpenAI developers showed how ChatGPT used Atlas to go on the Instacart website and add items to the cart all by itself.

For now, the browser is available globally on Apple computers (macOS), but OpenAI says it will soon release versions for Windows, iPhones, and Android phones.

Experts say Atlas could become a serious challenge to Google Chrome, which currently controls about 71.9 per cent of the global browser market. Google’s parent company, Alphabet, saw its shares drop by 1.8 per cent after the announcement.

Google, which has majority of the online search market share, has also been trying to improve its browser using its Gemini AI model, which is now part of Chrome for US users.

Analysts believe OpenAI’s new browser might later start showing ads, which could make it compete directly with Google’s advertising business.

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