Information  X 
Enter a valid email address

Zipcom PLC (FFG)

  Print      Mail a friend

Wednesday 23 October, 2002

Zipcom PLC

Completion of Acquisition

Zipcom PLC
23 October 2002

Date:                  23rd October 2002
On behalf of:          Zipcom plc
Embargoed until:       0700hrs

Zipcom plc ('Zipcom')
Completion of the Acquisition of Transigent Limited ('Transigent')

Further to the announcement released on 27 September 2002, Zipcom, the
AIM-listed telecommunications operator, is pleased to announce the completion
today of its acquisition of Transigent (the 'Acquisition') for a total
consideration of £9.74 million.

The initial consideration for the acquisition has been satisfied by the issue to
the vendors of 277,777,778 Consideration shares in Zipcom, representing 39.12
per cent of the enlarged share capital, and by way of £3.49 million issue of
Loan Notes.

In addition, Collins Stewart placed with institutional and other investors
146,500,000 new Ordinary Shares in Zipcom at 2p per share and 1,570,000 units of
£1 nominal value 7.5 per cent. convertible unsecured loan stock 2012, raising
approximately £3.9million (net of expenses) to provide additional working
capital for the Company.  The Placings were underwritten by Collins Stewart.

The new Zipcom shares issued as consideration for the Acquisition and under the
Placing also announced on 27 September 2002, have been admitted to the
Alternative Investment Market (AIM) of the London Stock Exchange and trading in
them commences today, as expected.

Commenting on the successful completion of Zipcom's acquisition, Grahame Purvis,
Chief Executive of Zipcom, said:

'We are delighted that the acquisition of Transigent has been completed. Last
year we acquired HighwayOne's operations in the UK which gave us a substantial
infrastructure; this acquisition delivers 3,500 customers, an excellent
telesales operation to complement our direct salesforce and further strengthens
our management and technical skills.  We will now immediately commence the
process of integrating the two companies and realising the significant cost
savings that the combined Group delivers.  Zipcom is firmly placed as one of the
leading players in the provision of local loop telecommunications services
across the United Kingdom.  We are confident that our enhanced product and
service offerings, and extended geographical reach will deliver attractive
benefits to our customers, employees and shareholders.'


Press Enquiries to:
Emma Kane/Scott Convoy                                     Tel: 020 7955 1410
Redleaf Communications

Grahame Purvis, Chief Executive & Chairman                 Tel: 01483 522900
Zipcom plc

                      This information is provided by RNS
            The company news service from the London Stock Exchange