4th Jun 2019 12:04
LONDON (Alliance News) - eServGlobal Ltd on Tuesday said it has agreed to sell its core operating business, eServGlobal, and associated assets to Seamless Distribution Systems AB for EUR2.0 million in cash.
The stock was trading 9.6% higher on Tuesday at 6.30 pence a share.
The digital transactions technology company said its only trading activity, following the disposal, will be the management of its 36% stake in HomeSend SCRL. eServGlobal noted that it does not intend to buy any further operating businesses following completion of the sale.
Following the transaction, eServGlobal intends to change its name to Wameja Ltd. The transaction and the change of name are both conditional upon shareholder approval.
eServGlobal sadi it has received undertakings from shareholders in respect of 501.4 million shares in aggregate, or 41%, to vote in favour of the resolutions.
Looking ahead, the company said it expects Andrew Hayward to step down as a director and chief financial officer upon completion of the transaction, while Executive Chair John Conoley will cease to have an executive role within six months of completion.
"We have worked hard to reshape the core business into an asset that now has greater value as part of a complementary entity within the Seamless organisation. This is good for our customers, and importantly should provide better opportunity for many of our people who have worked hard to get the company to this point," Conoley said.
"Looking forward, the focus of the eServGlobal board will solely be on its relationships with HomeSend and Mastercard as the board continues to seek to maximise the value of the asset for eServGlobal shareholders," added Conoley.