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NETELLER CONCLUDES CALGARY PROPERTY SALE
The Isle of Man based e-cash processor Neteller plc has signed a revised agreement for the sale of its Calgary property to Leben Investment Corporation. The revision means that closing will now occur end June 2008, allowing Neteller to receive two further non-refundable stage payments in addition to the non-refundable deposit of CAD$ 1.3 million received to date.
NT Services Building Corp. acts for the parent group in the negotiations, signing the revised agreement at the end of April, when an amount of CAD$ 2 million was received by the company, with a further amount of CAD$ 1 million scheduled to be received by the on 31 May 2008.
Neteller CEO Ron Martin says the revised sale agreement is in the best interests of the Group and will provide a positive P&L impact by minimising lease costs on vacant space.
The balance of the consideration is to be paid to the Neteller group on the revised closing date of 30 June 2008. The stage payments, totalling CAD$ 4.3 million, will be deducted from the purchase price of CAD$ 33.5 million upon closing.
Martin commented “This agreement marks the successful conclusion of a lengthy process of negotiations with Leben Investment Corporation and the board is pleased with the outcome. The revised closing date of 30 June 2008 allows the Group a period during which it can maximise its return from under-utilised space in the property prior to its sale.”
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