Stargroup - Indue Acquisition Update
Financial Technology and ATM company Stargroup Limited has executed a deed of variation to the original deal with Indue Limited to acquire its ATM switching, settlement, processing and reseller business. Stargroup and Indue have agreed to varied terms including the payment of a further 5% non-refundable deposit, the payment of $2.6M on or before 14 April and the balance of the consideration on or before 28 April. Stargroup has also agreed to commercial terms with a major shareholder to provide loan funds to assist with finalising this acquisition.
Financial Technology and ATM machine company Stargroup Limited ( ASX : STL) wishes to advise it and its wholly owned subsidiary, StarLink Pty Ltd, have executed a deed of variation to the original agreement signed with Indue Limited (Indue) in relation to the acquisition of its Automatic Teller Machine (“ATM”) switching, settlement, processing, telecommunications and reseller business.
Stargroup and Indue have agreed to varied terms in relation to the completion of the transaction and in particular, the timing of the payment of the purchase price.
The varied terms, include the payment of a further 5% non-refundable deposit (an amount of $325,000 and this payment has been made), the payment of a further $2,600,000 to Indue on or before 14 April 2017 and the balance of the consideration is due and payable on or before 28 April 2017.
The Board of Stargroup wishes to advise that it has also agreed to commercial terms with a major shareholder to provide loan funds totaling $3,000,000 for a period of two years to assist in the finalization of this acquisition.
The Board continues to work with a number of shareholders and funding sources as part of securing the balance of the purchase price and will continue to keep the market informed of developments.
Mr Todd Zani, Stargroup’s CEO and Executive Chairman said “The last few weeks have been what I would call ‘unusual’ in that our funder had written to Indue indicating the transaction would settle on 13 March 2017, but as announced, that did not occur. Since our announcement on 15 March, we have had numerous offers of support from shareholders and alternative funders and we are busily working through all of those offers with a view to completing this transaction.“
