b digital buys digiplus

  1. 235 Posts.
    Newtel tried unsuccessfully to buy Digiplus.

    This is what Newtel said at the time,
    "At a general meeting of shareholders to be held in August, the key proposal to be voted on is the allotment of $10 million in ordinary shares and $40 million cash for the takeover of Digiplus assets in Australia and New Zealand."

    And this is what B Digital are paying,
    "Consideration will be $20.4 million in cash ($10 million to be
    deferred for three years after closing) and the issue of 333.3 million B
    Digital shares, representing about 57 per cent of B Digital.
    Depending on the net asset position of Digiplus at closing, the
    issue of shares may be adjusted down to 300 million or up to 350 million
    shares (the latter representing up to 58.5 per cent of B Digital post
    Funding for the cash component of the purchase will be made
    possible by resources within DigiPlus."

    Looks like Digiplus are funding their own takeover.

    They will be hoping for better luck this time.

    If I remember correctly at the time when Newtel were going belly up there was a rumour that B Digital might have been involved in a rescue, which was denied by B Digital.

    I wonder if Digiplus retained the non refundable deposit paid them by Newtel.

    Anyone heard what is happening re Newtel wind up? Have you any information, My Contacts?
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