(Alliance News) - IT service management company Billing Services Group Ltd on Friday said it has signed an agreement to sell its subsidiary BSG Wireless Ltd to Wi-Fi provider Single Digits Connection LLC for USD5.3 million.
The sale of BSG Wireless is conditional upon shareholder approval at a general meeting scheduled for February 19. Currently, 63% of shareholders have voted in favour of the resolution to dispose of the BSG Wireless business.
The net proceeds from the sale are expected to be approximately USD4.3 million. Billing Services said that following the completion of the proposed sale, a cash distribution taken from the proceeds will be made to shareholders in the first quarter of 2020.
In 2018, BSG Wireless posted revenue of USD2.9 million and a net loss of USD1.35 million.
Billing Services said that if the sale is completed, the company will continue to be classified as an operating company and not a cash shell. It will continue to operate the Wireline business and the TPV business.
It added that the Wireline business has experienced a decline in revenue and should this continue and profit is affected, it will try to find a buyer for the business or consider other available options. The TPV Business is relatively stable, it said, adding that it has multiple competitors, some of whom could be potential buyers of the business.
Shares in Texas-headquartered Billing Services were up 58% at 3.00 pence on Friday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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