TIDMNWKI 
 
RNS Number : 4680T 
Networkers International PLC 
08 June 2009 
 

 
 
8 June 2009 
 
 
 
 
Networkers International plc (the 'Company') 
 
 
Joint Venture Agreement 
 
 
The Group today announces that it has reached an agreement with its Joint 
Venture (JV) partner for the JV partner to purchase Networkers' stake in the JV 
business for a total cash consideration of US$4.2m (approximately $3.5m net of 
foreign taxes).  The JV was set up in 2001 as a resource and project service 
provider within the telecommunications and IT sector, originally operating in 
Saudi Arabia but successfully establishing itself in Iran, UAE, Pakistan and 
Algeria.  Completion is conditional upon the approval of the Saudi Arabian 
authorities which is expected to occur within the next two months. 
 
Commenting on today's announcement, Spencer Manuel, CEO said "The joint venture 
partnership has proved an extremely successful experience for the Group.  The 
disposal allows both parties to focus on further international expansion in 
their respective geographical markets.  During the 8 years of the partnership we 
have built up a very strong relationship with our JV partners, Saudi Telecoms 
Systems Limited, and I am pleased to announce that our 50:50 partnership located 
in Dubai, to provide recruitment services in the Middle East (excluding Saudi 
Arabia, Iran and Algeria) remains in place." 
 
"When the full proceeds are received by the Group they will be used to further 
reduce our net debt position which, even before accounting for the JV disposal, 
has been reduced to GBP8m (of which GBP2m relates to invoice discounting) from 
GBP20.7m in December 2006 when the debt was taken on to make the successful MSB 
acquisition." 
 
The JV contributed GBP240,000 to the Groups pre tax profit for the 6 month 
period to 30 June 2008, at which point it was reclassified as an investment held 
for resale and no additional profit has been attributed to the Group.  As at 31 
December 2008 the Group's share of the JV's net assets represented GBP1.7m 
indicating a post tax profit on disposal of approximately GBP450,000. 
 
The Group's cash investment in the JV totalled GBP122,000. 
 
 
 
 
Enquiries: 
 
 
Networkers International     020 8315 9000 
Spencer Manuel, CEO 
Jon Plassard, CFO 
www.networkersmsb.com 
 
 
Seymour Pierce Limited     020 7107 8000 
Richard Feigen 
Catherine Leftley 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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