Disposal of mobile top-up businesses

 

TIDMPAYZ 
 
RNS Number : 8096Z 
Payzone plc 
29 September 2009 
 
29 September 2009 
 
 
Payzone plc ("Payzone" or the "Company") 
Disposal of mobile top-up businesses in Germany, Poland and the Netherlands 
 
The Board of Payzone is pleased to announce that the Company has reached an 
agreement to sell its mobile top-up businesses in Germany, Poland and The 
Netherlands. The businesses have been sold to Quam Equity International GmbH, 
the owner of ICP Group, a provider of electronic payment systems, payment 
terminals and terminal services across Germany, Austria, Switzerland and The 
Netherlands. 
 
Payzone's existing terminal maintenance business in The Netherlands and its 
German ATM operations are not part of this transaction. Following this 
transaction, the Company will no longer have a presence in Poland. 
 
The cash consideration receivable by Payzone for the three mobile top-up 
businesses being sold is EUR2.2m. In addition, the transaction will result in the 
release of deposits and financial guarantees totalling EUR8.9m provided as 
security to suppliers of the businesses. The businesses will be sold with cash 
balances estimated to be EUR4.4m on completion. As part of the transaction, 
Payzone will retain certain parent company guarantees relating to the businesses 
for a transitionary period. 
 
Completion is expected to take place later today. Payzone will use the proceeds 
raised by the disposals to reduce debt. 
 
The total net assets of the Payzone German, Polish and Dutch mobile top-up 
businesses were valued at EUR4.01m as at 31 March 2009 and these businesses 
contributed EUR4.71m profit (before exceptional items) to Payzone's pre-tax 
profits for the full year to 30 September 2008. 
 
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 their 
disposal, management can concentrate resources on Payzone's key business. 
Following the disposal of the Italian, Spanish and French operations in 2008, 
these disposals continue our strategy of exiting non-core markets and 
concentrating on those that offer significant scale and growth for our 
services." 
 
Dr. Winfried Jerono, Managing Director of Quam Equity International and CEO of 
ICP Group, said: 
 
"This transaction is a milestone in the development of ICP Group to being a full 
service provider in the field of electronic payment. In combining Payzone's 
mobile top-up businesses in Germany, Poland and The Netherlands and ICP Group, 
ICP Group is able to offer its clients a complete product range comprising 
hardware, software, electronic cash processing, customer and gift cards as well 
as cellular pre-paid solutions. The transaction significantly increases the 
market share of ICP Group. Furthermore, the acquisition of the Payzone business 
in Poland enables ICP Group to widen its geographic reach into the Eastern 
European market for electronic payment solutions which is expected to 
significantly grow over the coming years. I am convinced that we have a found 
transaction structure that is to the benefit of all stakeholders of Payzone and 
ICP Group." 
 
 
 
Enquiries 
Payzone                                                        Tel: [phone] 
6600 
Mike Maloney / Nigel Bell 
 
Rothschild Tel: [phone] 
Financial Adviser to Payzone 
Ed Welsh / Dev Tanna 
 
Panmure Gordon                                             Tel: [phone] 
Nominated Adviser and Broker to Payzone 
Hugh Morgan / Stuart Gledhill 
 
Powerscourt                                                    Tel: [phone] 
1446 
Payzone Media Enquiries 
Paul Durman / Rory Godson 
 
ICP Group Tel: [phone] 
Dr. Winfried Jerono / Hans Weller 
Commerzbank Corporates & Markets                 Tel: [phone] 
Financial Adviser to ICP 
Jens Bender / Jörg Leussink 
 
 
 
Note 
 
1. The sources of financial data are the Company's annual and interim accounts 
for the Polish and German mobile top-up businesses and management accounts for 
the Dutch mobile top-up 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. 
 
Rothschild and Panmure Gordon, each of which is authorised and regulated by the 
Financial Services Authority, are each 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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