News blog
Coms
- BY: Andrew Hore |
- POSTED: 13/12/2007 |
Internet telecoms company Coms is in discussions to acquire Plus-Quoted company Sim4Travel.
Sim4Travel provides travelers with international pay as you go SIM cards to use abroad. This enables them to avoid roaming charges. It can be used in more than 120 countries. It was formed in September 2004 and was introduced to Plus-Quoted on 5 May 2006.
A share for share exchange is likely to value the company at around £3m. Following the news of the bid the shares dropped 0.35p to 0.65p – a new all-time low and less than one-tenth of the original starting price. That still values the company at £4.8m.
Sim4Travel needs cash so Coms is lending it up to £500,000 at 5% per annum above Barclay’s base rate. This loan is repayable by the end of March and is secured on the company’s assets. If the company’s situation deteriorates then Coms might get the assets it wants by calling in the loan.
Aim-quoted investment company Networx owns 11.8% of the fully diluted share capital of Sim4Travel plus convertible loan notes equal to a further 12.7%. Coms chairman Jason Drummond is also a director of Networkx, while Networx director Johnathan Rowland and Sim4Travel chairman Leo Knifton were both directors of the Aim shell into which Coms reversed in September 2006.
Networx will subscribe for £500,000 of Coms shares at 0.6p each after the posting of the offer document. It will also be issued with warrants for 50m shares to replace its Sim4Travel warrants.
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