After sale of Euroweb Hungary Rt. and Euroweb Romania S.A., Euroweb will continue to operate in its current business area involving IT consulting in Central and Eastern Europe through its wholly-owned subsidiary, Navigator Informatika Rt.
Euroweb International Corp. ("Euroweb") (Nasdaq:EWEB) today announced that it has entered into a Share Purchase Agreement with Invitel Tavkozlesi Szolgaltato Rt. ("Invitel"), the second largest fixed line Hungarian telecommunications company, for the sale of Euroweb's two Internet and Telecom related operating subsidiaries, Euroweb Hungary Rt. and Euroweb Romania S.A.
Upon the expiration of the exclusivity entered with a third party that was seeking to purchase its subsidiaries, Euroweb received an unsolicited offer from Invitel and shortly thereafter entered into the Share Purchase Agreement. The purchase price for the subsidiaries is US$30,000,000. 98% of the purchase price or US$29,400,000 is payable at closing and the remaining 2% is payable upon delivery of a certificate prepared by an independent auditor identifying the net indebtedness of the two subsidiaries, which are required to be debt free.
The closing of the sale of Euroweb's Internet and Telecom related operating subsidiaries, of which the company cannot provide any guarantee, is subject to approval of the competition office in Hungary and approval of the shareholders of Euroweb. Euroweb will continue to operate in its current business area involving IT consulting in Central and Eastern Europe through its wholly-owned subsidiary, Navigator Informatika Rt.
Euroweb's Chief Executive Officer, Csaba Toro, stated: "I am very delighted to announce the signing of this Share Purchase Agreement. We believe the US$30 million purchase price reflects our active and successful merger and acquisition strategy, which we have implemented over the last few years. We believe that this approach was a great way to utilize the consolidation opportunities in the Central and Eastern European market and, especially in the Hungarian Internet and telecom market, in order to further develop our company. Upon closing the sale of our two Internet and Telecom related operating subsidiaries, as we have indicated earlier, we are looking at several new possibilities, which can enable management to use its past experience and repeat a comparable scenario in other related market segments, of which we cannot provide any guarantee, such as the IT sector where Navigator is currently active."
Euroweb International owns and operates Internet and Telecommunication Services Providers and an IT outsourcing company in Hungary and Romania through its wholly owned subsidiaries Euroweb Hungary Rt., Euroweb Romania S.A. and Navigator Informatika Rt. Euroweb's common stock is traded on the Nasdaq SmallCap Market under the symbol "EWEB". For more information go to: www.euroweb-international.com
