Mobile value added services (VAS) company IMImobile has struck a deal to acquire 18.56% stake owned by AXA IM (Sun Life/Framlington) in UK-based mobile applications company WIN Plc £2.7 million (about $4.1 million). This would take its holding to 20.93% as it already owns 2.37% in the AIM-listed firm making it the single largest shareholder.
The deal that values Win Plc at £14.5 million (about $22.1 million) will also trigger an open offer to other shareholders of Win at the same price of 141pence per share. The company last traded at 126.5 pence a share, a discount of 10% to the offer price.
Besides AXA, other large shareholders of Win include ISIS EP LLP, Oxygen8Communications, Legal & General Plc, National Grid UK Pension Scheme and Henderson Global Investors.
The deal between AXA and IMI will cease to be binding if the offer is not announced before June 30, 2010, or a third party makes a counter bid for Win (provided that the counter bid raises offer price by atleast 5%).
Win Plc clocked 9.8% increase in turnover to £41.9 million (about $63.8 million) in 2009 with operating profit of £1.4 million (about $2.1 million). The company that generates almost 80% of revenues from the UK, had net earnings of £1.2 million (about $1.8 million). The zero debt company had cash of £3.1 million (about $4.7 million) at December end 2009.
Founded by Vishwanath Alluri(Chairman & CEO) and Shyam Bhat(CTO) in 2000, IMImobile is backed by investors such as Sequoia, Spark Ventures and Firstmark Capital. It has around 450 employees globally.