On 24 May Crimsonwing plc announced that it entered into a Share Purchase Agreement to acquire 49% of the issued share capital of Promentum Holding BV.
Crimsonwing plc had acquired a 51% controlling stake in Promentum in September 2007 and subject to approval by shareholders of Crimsonwing plc in general meeting, it will acquire the balance of shares in this Netherlands-based company.
Promentum Holding was attributed a value of €2,400,000 and the total purchase consideration for the 49% equity stake amounts to €1,176,000. Agreement was reached for this to be settled partly through the issuance of new shares in Crimsonwing plc and the balance through a debt instrument. Crimsonwing announced that it will allot 2,940,000 shares to the shareholders of Promentum at a price of €0.30 per share for 75% of the consideration. The remaining 25% (€294,000) will be settled through a 4-year loan.
Crimsonwing explained that the entire acquisition of this subsidiary will enable the Group to achieve a complete restructuring of the three Crimsonwing Dutch businesses (Promentum Holdings BV, Crimsonwing BV and VDA Informatiebeheersing BV) into one operating unit – Crimsonwing NL.