Last checked at 23 Jul 2010 11:20
For immediate release: 23 July 2010
eXpansys plc
("eXpansys", the "Group" or the "Company")
Result of General Meeting
Approval of Acquisitions and Placing
eXpansys, the online consumer electronics retailer, is pleased to announce that all resolutions proposed at the General Meeting of the Group held today were duly passed. Shareholders have approved the acquisitions of Data Select Network Solutions Limited ("DSNS") and PJ Media Limited ("PJ Media"), two businesses controlled by Peter Jones CBE, for a combined consideration of £38 million together with a placing of 535,714,286 new ordinary shares at 5.6 pence per share to raise £30 million before expenses.
The acquisitions of DSNS and PJ Media are the first stage in eXpansys' strategy to become a leading global online technology superstore. eXpansys is an established online retailer of consumer electronics in 50 countries. Today eXpansys sells wireless devices on a predominantly 'SIM-FREE' basis, however, the Directors believe that the opportunity presented by the acquisition of DSNS, which specialises in the B2B sale of SIM cards in the UK, will open up the whole network-connected market to eXpansys and enable it to offer a complete mobile solution to a far greater number of customers. eXpansys is a well-known reseller of wireless 'smartphone' devices, one of the fastest growing segments in the mobile market, and which the Directors believe could represent as much as half of all mobile sales within the next two years. The strength of this existing position, combined with DSNS' network and Mobile Virtual Network Operator (MVNO) relationships is expected to be a core component of eXpansys' growth strategy. The Directors aim to significantly grow the presence of the enhanced eXpansys in Europe initially and, eventually, in the USA and Asia, where eXpansys has existing operations.
The enlarged group is further enhanced by the acquisition of PJ Media, an e-commerce and web publishing business with expertise in the telecommunications sector. The Directors expect that PJ Media will be instrumental in optimising the eXpansys website on a global basis, in driving traffic to the sites and enhancing the eXpansys online customer experience. Furthermore, the PJ Media team, when combined with the eXpansys e-commerce services team who have developed websites for the likes of Motorola and HTC, will have a powerful end to end services offering for other businesses with online ambitions.
Bob Wigley, recently appointed Chairman of eXpansys, commented:
"We are delighted that the acquisitions of DSNS and PJ Media have been approved. The strategic synergies created by bringing these businesses together under eXpansys are compelling and will propel eXpansys forward in terms of what we can offer to customers. The funds that we now have in place, together with an increasingly experienced management team, mean that we can accelerate the business model. Our ambition is, ultimately, to become the international market leader in this space."
Full details of the transaction were set out in a circular sent to Shareholders on6 July 2010. Application has been made for the admission of the 535,714,286 Placing Shares, together with the 442,364,707 Consideration Shares to trading on AIM. It is expected that Admission will occur, and that dealings will commence, at 8.00am on 26 July 2010. Immediately following Admission, the Company's total issued share capital will be 1,156,250,000 Ordinary Shares of 0.25p each. This figure (1,156,250,000 Ordinary Shares) may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure and Transparency Rules.
For further information please contact:
| eXpansys plc Anthony Catterson, CEO
| Tel: +44 (0) 161 918 3499 acatterson@expansys.com |
| Tim Eltze, COO and Company Secretary | Tel: +44 (0) 161 918 3473 tim.eltze@expansys.com |
| Cenkos Securities plc Stephen Keys/Camilla Hume | Tel: +44 (0) 20 7397 8926 skeys@cenkos.com
|
| M:Communications Nick Miles/Ben Simons
| Tel +44 (0)20 7920 2330 simons@mcomgroup.com
|
| Investor relations website | www.expansys.plc.uk |
About eXpansys
eXpansys is a global online consumer electronics retailer, operating directly in 50 countries with a vast range of products, and a focused approach to service and value for its customers. The Group recently acquired Data Select Network Solutions, whose relationships with most of the UK's network operators and MVNOs will propel eXpansys forward in its ability to offer customers the complete mobile wireless solution. The Group also includes PJ Media, an e-commerce and web publishing business with expertise in the telecommunications sector, and a number of large International Blue Chip clients.