EST Media closes tie-up giving Deltagroup backdoor listing

Telco

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Listed EST Media on Wednesday said it closed transactions that make IT company Deltagroup Holding its majority owner, state news wire MTI reports.

Under the terms of the deal, announced in July and approved by EST Media shareholders at an EGM in October, EST Media acquired 100% of Deltagroup unit Delta Systems for a consideration of HUF 28.6 billion, including a HUF 2.35 bln shareholder loan from GlobTerm and a HUF 26.25 bln in-kind contribution from Deltagroup. In turn, EST Media issued 125 million ordinary shares for Deltagroup, making the company its majority owner.

At the EGM in October EST Media shareholders also voted to change the name of the company to Delta Technologies, to appoint Deltagroup managers to the board and to move the companyʼs headquarters to Deltagroupʼs HQ.

Delta Systems has annual revenue of about HUF 16 bln, generating around half of its parent companyʼs turnover.

EST Media had revenue of HUF 4.8 bln last year, its audited annual report shows.

The price of EST Media shares was up 0.28% about half an hour after the market open.

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