NetPlay TV Sells Back £2.6m Business for £1

23rd December 2009 8:45 am GMT

NetPlay TV plc has completed the divestment of its premium rate telephony business, Abstract Games, for a nominal fee of £1 to its previous owners, having agreed to pay them £1.1 million in final settlement of the purchase agreement.

NetPlay TV said yesterday that it had agreed final payment to the previous owners of Abstract Games, Ronald Hatchett, Steven Breeds and Adam Yendle, and the subsequent sale of the business back to them following NetPlay TV's decision to divest itself of the premium rate telephony business.

Abstract Games was purchased for an initial consideration of £500,000 in February 2007, with further deferred consideration at the time capped at £3.5 million. During 2008 the company paid consideration of £1.0 million, and yesterday the Board agreed a final payment with the vendors of £1.1 million to be paid as full and final settlement of the purchase agreement, bringing the total price tag to £2.6 million.

NetPlay TV said it will retain the recurring revenues from the subscription services operated by Abstract Games since they joined the group, but has sold the business to the vendors for £1.

In addition NetPlay TV said yesterday that the deferred consideration shares worth £250,000 relating to its purchase of quiz and mobile casino services from Info-Download Limited in January of this year, will be issued today and are expected to be admitted to trading on London's AIM from December 29th 2009.

The deferred consideration will be satisfied by the issue of 961,538 new ordinary shares, to be issued at a pre-agreed price of 26p.

The company's purchase of quiz and mobile casino services from Info-Download Limited was for an initial consideration of £750,000, satisfied by the issuance of 2,884,615 shares and deferred consideration of £250,000.

NetPlay TV said that mobile quiz revenues have remained constant since acquisition, whilst the mobile casino revenues have shown exceptional growth. Total bets placed through the mobile casino platform were £0.9 million for the month of November and continue to grow on a month by month basis.

Shares in NetPlay TV plc (Co. Profile) (AIM:NPT) are currently trading at 24.00 pence per share in London this morning.

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