Brief: LINK Mobility: Contemplating Potential Acquisition And EUR Bond Tap Issue
14/06/2021 07:08
June 14 (Reuters) - Link Mobility Group Holding ASA
LINKM.OL :
* LINK MOBILITY: CONTEMPLATING POTENTIAL ACQUISITION AND EUR
BOND
TAP ISSUE
* HAS AGREED IN PRINCIPLE, AND IS IN EXCLUSIVE NEGOTIATIONS,
TO
ENTER INTO A DEFINITIVE AGREEMENT TO ACQUIRE A LEADING US BASED
CPAAS PROVIDER (TARGET) (ACQUISITION), TO ACCELERATE LINK'S
STRATEGIC EXPANSION INTO RAPIDLY GROWING CPAAS MARKET IN NORTH
AMERICA.
* PROPOSED ACQUISITION WILL ADD AN ESTIMATED NOK 232 MILLION
AND
NOK 143 MILLION TO LTM PRO FORMA 1Q21 GROSS PROFIT AND CASH
EBITDA RESPECTIVELY
* AGREED PURCHASE PRICE FOR TARGET IS USD 260 MILLION AND
WILL BE
SETTLED BY USD 68 MILLION IN LINK SHARES TO BE ISSUED AT 10-DAY
VWAP (VOLUME-WEIGHTED AVERAGE PRICE) PER SHARE BEFORE SIGNING
AND USD 192 MILLION IN CASH WHICH WILL BE FINANCED THROUGH A TAP
ISSUE OF LINK'S 5-YEAR SENIOR UNSECURED FIXED RATE BOND ISSUE
* IF SUCCESSFUL, LINK IS EXPECTED TO ISSUE A TOTAL OF
APPROXIMATELY 105.2 MILLION SHARES FOR SETTLEMENT OF ACQUISITION
AND CONTEMPLATED ACQUISITION OF SOPRANO DESIGN LTD. (SOPRANO),
WHICH REPRESENTS 69% OF COMBINED PURCHASE PRICE FOR TWO
COMPANIES
* A TAP ISSUE OF LINK 5-YEAR SENIOR UNSECURED BOND ISSUE OF
EUR
170 MILLION MAY FOLLOW, SUBJECT TO INTER ALIA MARKET CONDITIONS
* ACQUISITION IS EXPECTED TO BE SIGNED AND COMPLETED SHORTLY
AFTER
CLOSING OF TAP ISSUE AND APPROVAL OF WAIVER
Source text for Eikon: ID:nObiZ23wVa
Further company coverage: LINKM.OL
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