Stargroup Limited (ASX: STL) has extended the completion date of the acquisition of the Indue Limited ATM switching, settlement, processing, telecommunications and reseller business. The sale contract became unconditional on 30 December 2016, with the previously extended completion date of 24 January 2017 now being set on or before 13 March 2017. This is as a result of funding not yet being available from Stargroup’s approved $15 million debt instrument. Stargroup remains committed to completing this transaction.
Financial Technology and ATM machine company Stargroup Limited (ASX : STL) wishes to advise it and its wholly owned subsidiary, StarLink Pty Ltd, have executed an agreement to extend the completion date of the acquisition of the Indue Limited (Indue) Automatic Teller Machine (“ATM”) switching, settlement, processing, telecommunications and reseller business.
The sale contract became unconditional on 30 December 2016 and the original completion date of 31 December 2016 was extended to be before 24 January 2017.
As previously advised to the market on 2 December 2016, Stargroup has put in place a debt instrument for a maximum of $15mil to fund this acquisition and other potential acquisitions with a Sydney based credit provider. The funding was not available before 24 January as required in order for Stargroup and Starlink to complete the transaction.
Stargroup has agreed with Indue to further extend the completion date to no later than 13 March 2017, and the Sydney credit provider has paid a 5% non-refundable deposit ($325,000) to Indue which will be forfeited by the Sydney credit provider if the acquisition is not completed on or before 13 March 2017.
Mr Todd Zani, Stargroup’s CEO and Executive Chairman said “We are obviously disappointed that the transaction has not completed as originally scheduled but both Indue and Stargroup are committed to this transaction and it is proceeding on an unconditional basis.“