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Teleunit

  • BY: Andrew Hore |
  • POSTED: 19/06/2008 |

Teleunit has sold a minority stake in its mobile content services business.

The Italian telecoms company will receive €11m in cash and a loan of €12m in return for selling 32% of Neomobile to a bank-owned venture capital firm and the mobile content company’s own management. The remaining 68% of Neomobile is valued at €34m. The deal has helped Teleunit shares perk up to 3.375p, valuing Teleunit at £6.28m.

At the end of June the net debt figure was €15.5m. Since then, Teleunit has received €7.1m from Telecom Italia, with a further €2.7m due in the next few months. 

That suggests that the value of Neomobile covers Teleunit’s market value and its pro forma net debt. It is difficult to assess, though, whether debt has increased since June. On top of that the Neomobile valuation is a notional one and there is no guarantee that the stake could be sold for that figure.

The deal is still dependent on the raising of €13m of debt finance and regulatory approval. Neomobile made €2m profit in 2006 and some of its positive contribution will be taken away from Teleunit’s earnings via minority interests. The majority of Telunit’s first half gross profit came from Neombile. There was no pre-tax split in the interim figures.

Teleunit accompanied this announcement with details of a number of write-downs and exceptional costs which total €5.4m. That, and any further group loss, will make a big dent in the balance sheet.

The 2007 figures will be published on 20 June. The payments from Telecom Italia weren’t made until after the year end.

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