LONDON: Bigblu Broadband plc (AIM: BBB.L) has announced plans to sell its Australian subsidiary, SkyMesh Pty Ltd, to SKM Telecommunication Services Pty Ltd, a new company set up by Salter Brothers Asset Management. The deal, known as the “Disposal,” is valued at up to AUD$50.20 million (£25.67 million).
Deal Details
– Initial Payment: 59.8% of the total price (AUD$30 million/£15.35 million) will be paid in cash on the completion date.
– Shares: 26.5% of the total price will be given as shares in the new company.
– Additional Payments: The remaining 13.7% (AUD$6.88 million/£3.52 million) and other amounts based on SKM Telecommunication’s profits and debt collections will be paid one year after the completion date.
Use of Funds
The cash received will be used to reduce Bigblu Broadband’s debt with Santander Bank. The shares received will represent 33.7% of the new company initially.
Frank Waters, CEO of Bigblu Broadband, said, “This deal provides value to our shareholders and aligns with our strategic goals. It brings in industry expertise and growth capital, positioning SkyMesh for its next phase of development.”
The Board believes the sale is in the best interests of shareholders and recommends voting in favor of the deal. The Board members, who own 2.23% of the company’s shares, intend to vote in favor.
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