SOFIA (Bulgaria), August 5 (SeeNews) - Bulgarian IoT products maker Allterco [BUL:A4L] said that it signed a binding term sheet with the owners of Slovenian sector player GOAP d.o.o. Nova Gorica, with an indicative closing date for the transaction within the next three months after the signing.
The term sheet was signed with one institutional and three retail investors on July 29, Allterco said in a statement last week.
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The announcement comes after the Bulgarian company said in June that it offered to buy GOAP for 3.3 million euro ($3.4 million) in a bid to broaden its technology portfolio in home automation systems and automation devices for cruise ships.
The term sheet allows for the deal to be completed in two stages, with Allterco first acquiring 60% of the target business for 2 million euro under the provisions of a share purchase agreement. In the second stage, the buyer will take over the remaining 40% of GOAP's equity from its three retail investors, subject to call and put option agreements, within a certain pre-defined price range which will depend on to pre-agreed performance targets for GOAP over a set time period. The specific parameters of the call and put options are subject to further negotiations between the parties.
Allterco will be able to settle up to 50% of the purchase amount due to the individual shareholders through own stock.
The indicative deadline for the closing of the transaction may be pushed back by another three months, Allterco added.
At the end of June, the Bulgarian company completed a 780,000 levs ($408,730/398,810 euro) share buyback, repurchasing 40,000 of its own shares at 19.50 levs apiece in over-the-counter transactions. Allterco said earlier that the share buyback is intended to partly finance the planned acquisition of GOAP.
(1 euro = 1.95583 levs)