Feeds

INM sells stake in iTouch for €100m

'Very attractive' return on investment

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Independent News & Media has announced that it has agreed to sell its entire shareholding in the mobile application vendor iTouch for €100m.

For-side.com, a Japanese-based provider of mobile phone content, is to buy all of Independent News and Media's (INM) 152,840,212 iTouch shares at €0.65 cents per share. INM's shareholding is equivalent to 37.44 per cent of iTouch's issued share capital.

This price represents a 26.6 per cent premium on iTouch's closing middle-market share price on 27 April 2005 and delivers a return for INM of over 300 per cent on its original cash investment in the company. INM said that the proceeds from the deal will be used for general corporate purposes and to further enhance the group's publishing brands.

"We are happy that a small idea, started in South Africa, has worked to the benefit of the whole group in such spectacular fashion," commented INM's chief executive, Tony O'Reilly "Having first identified and invested in this fledgling start-up back in 1997 and having listed it on the London Stock Exchange in August 2000, the receipt of €100m in cash will represent a remarkable and most rewarding journey for all of our shareholders. This very attractive return on our investment reflects our stated objective of consistently delivering superior returns for our shareholders."

iTouch, which bought Finnish mobile entertainment services firm Jipii in July last year, is one of the largest listed European mobile content companies and has operations in 25 countries. iTouch provides information, entertainment and messaging services directly to consumers and via affiliate partners and network operator portals.

For the year ended 31 December 2004, iTouch reported group revenue of £78.0m and EBITDA of £8.1m. The company went in to 2005 with net assets of £43.2m.

For-side.com has approximately 12.5 million subscribers globally. Through its wholly-owned subsidiary For-side.com.uk the company already holds 18,248,276 iTouch shares, equivalent to 4.5 per cent of the firm.

In addition, the company has received irrevocable undertakings for a further 200,104,118 shares representing approximately 49.0 per cent of the existing issued share capital of iTouch. As a result, For-side.com either holds, or has received irrevocable undertakings in respect of around 53.5 per cent of the mobile application vendor.

Copyright © 2005, ENN

Related stories

MontaVista Linux phones heading for US and Europe
Intel snatches mobile graphics lead from ATI
Siemens to spin off loss-making phone unit

Choosing a cloud hosting partner with confidence

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.