9th Sep 2019 10:37
(Alliance News) - Shares in Matomy Media Group Ltd sank sharply Monday after it received an offer to buy its stake in technology firm Team Internet AG.
Advertising technology provider Matomy said it entered due diligence discussions with a potential buyer for its 90% stake in Team Internet as well as the 10% stake in the firm held by Rainmaker Investments GmbH.
In late August, Matomy announced it received several offers from potential buyers for its stake. This follows discussions with Rainmaker which would have seen the minority stake holder buy the remainder from Matomy from USD36 million fell through.
"Subject to reaching and consummating a binding agreement, the consideration contemplated in the sale offer, when added to the cash available in the company's bank account, is expected to be sufficient for the full and immediate repayment of the company's outstanding convertible bonds, as well as for settling, in an agreeable manner, the alleged obligations of the company towards Rainmaker," Matomy said in a statement.
In June, Matomy explained it held USD30 million in convertible notes related to the acquisition of a further 10% stake in Team Internet in 2018.
Shares in Matomy were 39% lower at 2.30 pence in London on Monday.
Related Shares:
MTMY.L