Filed by Axalto Holding N.V.
Pursuant to Rule 165 and Rule 425(a) under the United States Securities Act of 1933,
as amended
Subject Company: Gemplus International S.A.
Commission File No. 000-31052
Date: January 20, 2006
On
January 20, 2006, the following materials were made available on the website www.gemalto.com.
Important information
Investors and security holders are strongly advised to read, when they become available, the
prospectus/offer to exchange and related exchange offer materials regarding the business
combination transaction referenced in this press release, as well as any amendments and supplements
to those documents because they will contain important information. When available, the
prospectus/offer to exchange and the other documents may also be obtained from Axalto Investor
Relations. If required, the prospectus/offer to exchange will be filed with the Securities and
Exchange Commission (SEC) by Axalto. To the extent the prospectus/offer to exchange is filed
with the SEC, security holders may obtain a free copy of the prospectus/offer to exchange (when
available) and other related documents filed by Axalto at the SECs website at www.sec.gov.
Forward-Looking Statements
This communication contains certain statements that are neither reported financial results nor
other historical information and other statements concerning Axalto, Gemplus and their combined
businesses after completion of the proposed combination. These statements include financial
projections and estimates and their underlying assumptions, statements regarding plans, objectives
and expectations with respect to future operations, events, products and services and future
performance. Forward-looking statements are generally identified by the words expects,
anticipates, believes, intends, estimates and similar expressions. These and other
information and statements contained in this communication constitute forward-looking statements
within the safe harbor provisions of U.S. federal securities laws. Although management of the
companies believe that the expectations reflected in the forward-looking statements are reasonable,
investors and security holders are cautioned that forward-looking information and statements are
subject to various risks and uncertainties, many of which are difficult to predict and generally
beyond the control of the companies, that could cause actual results and developments to differ
materially from those expressed in, or implied or projected by, the forward-looking information and statements, and the companies cannot
guarantee future results, levels of activity, performance or achievements. Factors that could cause
actual results to differ materially from those estimated by the forward-looking statements
contained in this communication include, but are not limited to: the ability of the companies to
integrate according to expectations; the ability of the companies to achieve the expected synergies
from the transaction; trends in wireless communication and mobile commerce markets; the companies
ability to develop new technology and the effects of competing technologies developed and expected
intense competition generally in the companies main markets; profitability of expansion strategy;
challenges to or loss of intellectual property rights; ability to establish and maintain strategic
relationships in their major businesses; ability to develop and take advantage of new software and
services; the effect of the transaction and any future acquisitions and investments on the
companies share prices; changes in global, political, economic, business, competitive, market and
regulatory forces; and those discussed by Gemplus in its filings with the SEC, including under the
headings Cautionary Statement Concerning Forward-Looking Statements and Risk Factors. Moreover,
neither the companies nor any other person assumes responsibility for the accuracy and completeness
of such forward-looking statements. The forward-looking statements contained in this communication
speak only as of this communication and the companies are under no duty to update any of the
forward-looking statements after this date to conform such statements to actual results or to
reflect the occurrence of anticipated results or otherwise.
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Combination of Axalto Holding N.V. and Gemplus International S.A.
Materials for Website Posting www.gemalto.com
On
January 20, 2006, the following materials were made available on the
website www.gemalto.com.
Link from Main Page: Summary of Principal Transaction Terms
[Contents for linked page:]
A Merger of Equals
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On December 6, 2005, Axalto Holding N.V. (Axalto), Gemplus International S.A.
(Gemplus) and Gemplus two largest shareholders, the Texas Pacific Group (TPG) and
several Quandt family entities (the Quandt Entities), entered into a Combination
Agreement (the Combination Agreement) providing for a merger of equals combination of
Axalto and Gemplus. |
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The Boards of Directors of each of Axalto and Gemplus unanimously approved the merger of
equals combination. |
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The combined entity is to be named Gemalto N.V. (Gemalto). |
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The combination of Axalto and Gemplus is to be executed in two steps. |
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The following is a summary of the principal terms of the combination, including the
structure of the transaction, shareholders approvals, Gemaltos governance and management,
the conditions precedent to the combination and the restrictions on third-party offers. |
The First Step the Contributions by TPG and the Quandt Entities of All of their Gemplus Shares
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Promptly upon and subject only to the satisfaction of customary conditions precedent: |
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Following the Gemplus Distribution described below, TPG and the Quandt
Entities are to contribute to Axalto all of the Gemplus shares that they own,
representing approximately 25.3% and 18.4%, respectively, of Gemplus voting
rights, in exchange for a number of Axalto shares based upon the Exchange Ratio. |
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Immediately prior to the contributions by TPG and the Quandt Entities,
Gemplus is to make a distribution in the amount of 0.26 per share to all of its
shareholders, including TPG and the Quandt Entities (the Gemplus Distribution). |
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The contributions by TPG and the Quandt Entities are to occur even if
the Gemplus Board of Directors receives an unsolicited third-party offer and, as
may be required by applicable law, determines that such offer is superior to the
combination with Axalto and recommends the acceptance of that offer to Gemplus
shareholders. |
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The Exchange Ratio for the contribution by TPG and the Quandt Entities to Axalto of
their Gemplus shares will be two Axalto shares for every 25 Gemplus shares (the Exchange
Ratio). |
The Second Step Axaltos Offer to Exchange Axalto Shares for Remaining Gemplus Shares
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Promptly upon completion of the contributions by TPG and the Quandt Entities, Axalto
(which will have then changed its name to Gemalto) will offer to exchange Gemalto shares |
Combination of Axalto Holding N.V. and Gemplus International S.A.
Materials for Website Posting www.gemalto.com
Link
from Main Page: About Axalto
[Contents of linked page:]
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Axalto Holding N.V. (Axalto) is a joint stock company (naamloze vennoostschap)
incorporated in The Netherlands with headquarters in Amsterdam, The Netherlands. |
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Axaltos shares are listed on Euronext Paris S.A.s Eurolist. |
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Axalto is a leading digital security provider and a supplier of point-of-sale
terminals for use in a variety of applications in the telecommunications, finance, retail,
transport, entertainment, healthcare, personal identification, information technology and
public sector markets. |