Published on September 16th, 2015 | by Skrill payment0
Skill Group is acquired by Optimal Payments PLC for $1.2 billion
Optimal Payments Company was earlier known as Neovia Financial PLC. The company is based out of Isle of Man and functions on a large scale in the UK. The main functions provided by the company are facilitating the functions of the NETBANX gateway, helping in providing money transfer from person to person and supporting the day to day functions needed in e-money payments under NETELLER. Optimal Payments Company also endorses various NET+ prepaid cards which are used in 200 countries by ordinary consumers and merchants for their various transactions. In order to further enhance their presence in the market, Optimal Payments Company has decided to buy Sentinel Topco Limited and Skill Group which is a subsidiary company here. The total value paid for this acquisition would be $1.2 billion or 1.1 billion Euros.
What is the role of Netinvest Limited here?
Netinvest Limited is a subsidiary of Optimal Limited and this subsidiary would be responsible in acquiring all the issued share capitals of Skill Group. The amount to be paid would be $781 million using cash payment or 720 million Euros. Additionally 37.49 million would be paid for New Ordinary-Shares, when the entire acquisition process is complete. This would indicate that the shareholders of Sentinel Group Holdings S.A. would only own 7.9% of shares in the Enlarged Share Capital.
What is the equity consideration of Skrill?
In the segment of digital payment business, Skrill has been a notable player. When analyzing the net debt of Skrill which would be around $277 million, along with cash consideration, it would appear that the total value of equity consideration of Skrill would be $146 million or 135 million Euros. The valuation amount is created based on the principle of theoretical ex-rights price of the Rights-Issue. Studying these facts the total acquisition value was fixed at $1.2 billion. The total process of acquisition of Skrill by Optical Payment Company would be completed by the end of Q3 in 2015.
What is the expected on-going cost saving synergy?
By the end of 2016, an on-going cost saving synergies of $40million per annum has been targeted to achieve. One of the best four accounting firms has studied and confirmed the synergy estimates. In fact cost savings are also expected to be achieved and this would amount to $26 million by December 2016.
What are the other plans of Optimal Payments?
Optimal Payments have a few plans after the acquisition is completed. These would include:
• The implementation of Rights Issue of 5 New- Ordinary Shares, where the buyer would need to pay 166 pence for a single share in return for three old shares. The company is expected to raise around 451 million pounds thru this scheme.
• The buyer would also be offered 60% discount on 419 pence, which was the closing price of the share in March 2015. This acquisition would be based on the decision taken in the general meeting which is expected on 16th April 15. Here applications to the London Stock Exchange would also be undertaken and necessary procedures would be needed to follow.