Xps Pensions Share News (XPS)

(Adds executive comments, share price) By Rachael Gormley Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Online consumer electronics retailer eXpansys PLC (XPS.LN) Tuesday announced a "transformational" deal for the firm with the purchase of two businesses controlled by major shareholder and Dragons' Den entrepreneur Peter Jones for GBP38 million as part of its plan to build a global online technology superstore. The purchases of Data Select Network Solutions Ltd. and PJ Media Ltd. is being largely paid for by a discounted placing of 535,714,286 new shares at 5.6 pence each to raise GBP30 million. The placing price is a 58% discount to the closing price of 13.25 pence Monday. Chief Executive Anthony Catterson said the expanded company would have a much stronger position in a competitive marketplace and will be able to work directly with manufacturers like Samsung Group, Apple Inc. (AAPL) and Nokia Corp. (NOK1V.HE). "Our stronger financial base will mean we can work with the manufacturers on a territory-by-territory basis," Catterson said. DSNS has relationships with some of the U.K's major mobile telecommunication network operators, the company said, with a focus on the sale and distribution of SIM cards. PJ Media is a web design and on-line marketing services firm. Under the terms of the deal eXpansys will pay around GBP13.4 million in cash and issue up to 442,364,707 shares to the vendors. It will also take on around GBP10.8 million of debt owed by DSNS. As a result of the placing Peter Jones' stake in eXpansys will fall to 43% from 75%. Jones--well known for his role on the entrepreneur television show Dragons' Den--will also join the board of eXpansys as a non-executive director while Bob Wigley, chairman of directories firm Yell Group PLC (YELL.LN), will join as non-executive chairman. Catterson--the former managing director of the U.K. retail business of Carphone Warehouse Group PLC (CPW.LN)--joined in January and said the new, beefed-up board had helped attract blue-chip investors to the firm. As the deal qualifies as a reverse takeover of eXpansys, it will need shareholder backing at a meeting July 23. Both the placing and the acquisitions gained the backing of eXpansys' independent directors, who unanimously recommended that shareholders vote in favor of the resolutions. eXpansys also Tuesday reported a pretax loss of GBP2.7 million for the year ended April 30, down from GBP3.8 million a year earlier. Revenue rose to GBP50.7 million from GBP47 million. At 0926 GMT, shares in eXpansys were down 3.5 pence, or 26%, at 10 pence while the wider AIM index was up 0.6%. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; rachael.gormley@dowjones.com (END) Dow Jones Newswires July 06, 2010 05:43 ET (09:43 GMT)