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Thursday, 1 May 2008 – NETELLER Plc (LSE: NLR), the independent global online payments business, provides the following update on the disposal of the Group’s principal property in Calgary, Canada.
The Group has been continuing discussions with Leben Investment Corporation to achieve improvements to the transaction for the benefit of both parties.
The Group’s subsidiary NT Services Building Corp. signed a revised sale agreement on 30 April 2008. This agreement states that closing will now occur on 30 June 2008 and also provides for the Group to receive two further non-refundable stage payments in addition to the non-refundable deposit of CAD$ 1.3 million received to date. An amount of CAD$ 2 million was received by the Group on 30 April 2008, and a further amount of CAD$ 1 million is scheduled to be received by the Group on 31 May 2008. The revised sale agreement is in the best interests of the Group and will provide a positive P&L impact by minimising lease costs on vacant space (which it is intended will be subleased in the near future).
The balance of the consideration is to be paid to the Group on the revised closing date of 30 June 2008. The stage payments, totalling CAD$ 4.3 million, will be deducted from the purchase price of CAD$ 33.5 million (approximately USD$ 33.5 million) upon closing.
Ron Martin, President & CEO, commented “This agreement marks the successful conclusion of a lengthy process of negotiations with Leben Investment Corporation and the board is pleased with the outcome. The revised closing date of 30 June 2008 allows the Group a period during which it can maximise its return from under-utilised space in the property prior to its sale.” |
