Euroweb International Corp. ("Euroweb") (Nasdaq:EWEB)
today announced that it has entered into a Share Purchase Agreement
with Invitel Tavkozlesi Szolgaltato Rt. ("Invitel"), the second
largest fixed line Hungarian telecommunications company, for the sale
of Euroweb's two Internet and Telecom related operating subsidiaries,
Euroweb Hungary Rt. and Euroweb Romania S.A. Upon the expiration of
the exclusivity entered with a third party that was seeking to
purchase its subsidiaries, Euroweb received an unsolicited offer from
Invitel and shortly thereafter entered into the Share Purchase
Agreement. The purchase price for the subsidiaries is US$30,000,000.
98% of the purchase price or US$29,400,000 is payable at closing and
the remaining 2% is payable upon delivery of a certificate prepared by
an independent auditor identifying the net indebtedness of the two
subsidiaries, which are required to be debt free. The closing of the
sale of Euroweb's Internet and Telecom related operating subsidiaries,
of which we cannot provide any guarantee, is subject to approval of
the competition office in Hungary and approval of the shareholders of
Euroweb. Euroweb will continue to operate in its current business area
involving IT consulting in Central and Eastern Europe through its
wholly-owned subsidiary, Navigator Informatika Rt.
Euroweb's Chief Executive Officer, Csaba Toro, stated: "I am very delighted to announce the signing of this Share Purchase Agreement. We believe the US$30 million purchase price reflects our active and successful merger and acquisition strategy, which we have implemented over the last few years. We believe that this approach was a great way to utilize the consolidation opportunities in the Central and Eastern European market and, especially in the Hungarian Internet and telecom market, in order to further develop our company. Upon closing the sale of our two Internet and Telecom related operating subsidiaries, as we have indicated earlier, we are looking at several new possibilities, which can enable management to use its past experience and repeat a comparable scenario in other related market segments, of which we cannot provide any guarantee, such as the IT sector where Navigator is currently active."
About Euroweb
Euroweb International owns and operates Internet and Telecommunication Services Providers and an IT outsourcing company in Hungary and Romania through its wholly owned subsidiaries Euroweb Hungary Rt., Euroweb Romania S.A. and Navigator Informatika Rt. Euroweb's common stock is traded on the Nasdaq SmallCap Market under the symbol "EWEB". For more information about the Company go to: www.euroweb-international.com
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements that involve risks and uncertainties. The statements in this Release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause Euroweb International Corp's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.
Euroweb's Chief Executive Officer, Csaba Toro, stated: "I am very delighted to announce the signing of this Share Purchase Agreement. We believe the US$30 million purchase price reflects our active and successful merger and acquisition strategy, which we have implemented over the last few years. We believe that this approach was a great way to utilize the consolidation opportunities in the Central and Eastern European market and, especially in the Hungarian Internet and telecom market, in order to further develop our company. Upon closing the sale of our two Internet and Telecom related operating subsidiaries, as we have indicated earlier, we are looking at several new possibilities, which can enable management to use its past experience and repeat a comparable scenario in other related market segments, of which we cannot provide any guarantee, such as the IT sector where Navigator is currently active."
About Euroweb
Euroweb International owns and operates Internet and Telecommunication Services Providers and an IT outsourcing company in Hungary and Romania through its wholly owned subsidiaries Euroweb Hungary Rt., Euroweb Romania S.A. and Navigator Informatika Rt. Euroweb's common stock is traded on the Nasdaq SmallCap Market under the symbol "EWEB". For more information about the Company go to: www.euroweb-international.com
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements that involve risks and uncertainties. The statements in this Release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause Euroweb International Corp's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.
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