23rd Dec 2016 09:29
LONDON (Alliance News) - Payments company PayPoint PLC on Friday said it has agreed the sale of its Mobile Payments business and will return proceeds from the divestment to shareholders via a special dividend.
PayPoint has sold the business to Volkswagen Financial Services AG, a unit of German carmaker Volkswagen, for GBP26.5 million in cash.
From those proceeds, PayPoint will pay a 38.90 pence per share special dividend to shareholders on January 11.
The Mobile Payments division comprised PayByPhone Technologies Inc, PayByPhone Ld, Mobile Payment Services SAS and Adaptis Solutions Ltd. In the year to March 2016, it made a pretax loss of GBP2.6 million.
PayPoint said its Mobile Payments arm is currently performing better than previously anticipated, but the sale is in line with its strategy of narrowing its focus on multi-channel payments services in regions where it has retail networks in place.
"I am delighted to have found such a well suited company to acquire our PayByPhone business and take it forward. We wish the buyer and the employees of PayByPhone the best for the future. With the major restructuring completed in line with our strategy, we can now direct our entire focus on the development of our retail business, including the continued rollout of our new PayPoint One terminal and EPoS," said PayPoint Chief Executive Dominic Taylor.
Shares in PayPoint were up 1.2% to 956.94p on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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