UK-based online gadget retailer, eXpansys, is merging with two other companies that are controlled by its majority shareholder, Peter Jones. The two companies are Data Select Network Solutions (DSNS) which sells and distributes SIM cards, and PJ Media, a web design company.
As a result of this transaction, valued at 49 million GBP ($74 million), Peter Jones’ stake in the eXpansys will reduce from 75 to 43 percent. Additionally, there will also be a placing of further new shares with UK institutions to raise 30 million GBP ($45.5 million).
The board of the new company will see Bob Wigley (chairman of Yell and former Chairman of Merrill Lynch EMEA) and Peter Jones joining as non-executive Chairman and non-executive Deputy Chairman, respectively.
The transaction, which is qualified as a reverse takeover of eXpansys, is a subject to the approval of shareholders at a general meeting on July 23.
Commenting on the move, Peter Jones said: “I invested in the Company last year because I saw its potential. This deal is a major step in unlocking that potential. We expect to create over time a real powerhouse, both in terms of its investment potential and its ability to serve consumer technology products to customers right around the world.”
[Via: CellularNews]