Bulgaria’s Allterco Seeks Shareholder Nod to Sell Units to Norway's LINK
Bulgaria's Allterco said on Monday that it is seeking the approval of its shareholders to sell its five telecommunications subsidiaries to Norway's LINK Mobility Group for a price of at least 7.9 million euro ($9 million). Allterco's shareholders will vote on the proposal at an extraordinary meeting scheduled for December 5, the company said in a bourse filing. The deal includes all shares in Allterco's units in Bulgaria - Teravoice, Tera Communications and Alterpay, as well as its Romania-based subsidiary Teracomm RO and Skopia-based Tera Communications DOOEL. The indicative price of the deal is the combined annual adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of the five companies multiplied by 5.5. The final price will be calculated on a cash free/debt free basis. One-third of the price will be paid upon the signing of the final agreement, while a further one third will be paid as seller’s credit with quarterly payable 4.75% interest per annum and a maturity date 3 years after closing.