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Expansys to buy 2 telecom firms for $57.5 mn

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CIOL Bureau
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LONDON, UK: British smartphone retailer eXpansys agreed to buy two telecom firms controlled by its key shareholder Peter Jones for 38 million pounds ($57.5 million) in a cash-and-stock deal to expand in the telecoms market.

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The company said it would fund the reverse takeover by raising 30 million pounds by placing 535.7 million shares at 5.6 pence each, a 58 per cent discount to its Monday close.

Shares of eXpansys were down 22.2 per cent at 10.5 pence at 0813 GMT on Tuesday on the London Stock Exchange.

Under terms of the deal, eXpansys will pay 13.4 million pounds in cash and issue up to 442.4 million shares to investors in Data Select Network Solutions and PJ Media.

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The company, which had revenue of 50.7 million pounds in the year ended April 30, is also assuming about 10.8 million pounds of Data Select Network's debt.

For the year to end-April, Data Select Network had a turnover of 15.4 million pounds, and PJ Media reported a turnover of 2.9 million pounds.

Peter Jones, one of the 'dragons' on TV show Dragon's Den, will own a 43 percent stake in the company and become its non-executive deputy chairman after the deal closes.

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