Est Media to acquire Delta Systems
website screen grab
Listed holding company Est Media Nyrt. revealed Tuesday it has signed a binding contract to acquire 100% of IT company Delta Systems Kft. for a HUF 28.6 billion consideration to be covered by equity and a shareholder loan, state news wire MTI reported.
Est Media said HUF 26.25 bln of the purchase price will be covered by a contribution in kind from Delta Systemsʼ owner, Deltagroup Holding. Est Media will issue 125 million ordinary shares for Deltagroup Holding, making the company its majority owner.
The remaining HUF 2.35 bln will be covered by a shareholder loan from GlobTerm, which acquired a 9.82% stake in Est Media just days earlier. The five-year loan will carry a rate of 3%. The transaction must still be cleared by the Competition Office (GVH).
Delta Systems has annual revenue of about HUF 16 bln, generating about half of its parent companyʼs turnover.
Est Media had revenue of HUF 4.8 bln last year, its audited annual report shows.
Trade in Est Media shares - which are listed in the Equities Standard category of the Budapest Stock Exchange (BÉT) - was suspended on Tuesday pending the extraordinary announcement. The suspension was lifted at 2.30 p.m. The share price was up 4.13% for the day at close of trading.
According to a description on the BÉT website, Est Mediaʼs two main lines of business are media and telecommunications. Its media activities (printed products, interior advertisements, online media, copyrighted audio and video downloads, radio) are centered around Est Media Group Kft., while telecommunication activities (internet service, Megafon telephone services) are centered around Externet Zrt. The asset management division is responsible for setting up the group structure and making strategic and business policy decisions (including the management of services based on grid technology).
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.