Disposal
December 23 2009 - 8:46AM
UK Regulatory
TIDMPAYZ
RNS Number : 6505E
Payzone plc
23 December 2009
23 December 2009
Payzone plc ("Payzone" or the "Company")
Disposal of EFT terminal business in The Netherlands
The Board of Payzone is pleased to announce that the Company has reached an
agreement to sell its
Electronic Funds Transfer ("EFT") payment solutions and
terminals business in The Netherlands. The business has been sold to FIBAD B.V.,
a provider of payment solutions.
Following this transaction, the Company will no longer have an operational
presence in The Netherlands.
The cash consideration receivable by Payzone for the business being sold is
EUR5.7m. In addition, the transaction will result in the release of deposits and
financial guarantees totalling 1.0m, provided as security for the business bank
overdraft facilities.
Completion is expected to take place later today. Payzone will use the proceeds
raised by the disposals to reduce debt and / or for reinvestment in the
business.
The total net assets of the Payzone Dutch EFT terminals business were valued at
negative EUR0.31m as at 30 November 2009 and the business contributed EUR0.51m
loss (before exceptional items) to Payzone's pre-tax profits for the full year
to 30 September 2009.
Mike Maloney, Chief Executive, said:
"This is a very pleasing result for Payzone as it provides an exit from non-core
businesses and also reduces the Company's debt. By completing this
disposal, management can concentrate resources on Payzone's key business.
Following the disposal of the Italian, Spanish and French operations in 2008 and
the PPC top-up operations in Germany, Poland and The Netherlands in Sept 2009,
this disposal continues our strategy of exiting non-core markets and
concentrating on those that offer significant scale and growth for our
services."
Enquiries
Payzone Tel: +353 1 207 6600
Mike Maloney / Nigel Bell
Panmure Gordon Tel: +44 20 7459 3600
Nominated Adviser and Broker to Payzone
Hugh Morgan / Stuart Gledhill
Powerscourt Tel: +44 20 7250 1446
Payzone Media Enquiries
Paul Durman / Rory Godson
Note
1. The sources of financial data are the management accounts for the Dutch EFT
terminals business, due to this business not operating as a standalone entity
during the relevant period.
Responsibility
The Directors of Payzone accept responsibility for the information contained in
this announcement. To the best knowledge and belief of the directors of
Payzone (who have taken all reasonable care to ensure that such is the case),
the information contained in this announcement is in accordance with the facts
and does not omit anything likely to affect the import of such information.
Panmure Gordon, which is authorised and regulated by the Financial Services
Authority, is acting exclusively for Payzone and no-one else and will not be
responsible to anyone other than Payzone for providing the protections afforded
to their respective clients, or for giving advice in relation to any matter
referred to in this press announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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