eServGlobal Limited Business Update (8172I)
29 November 2018 - 6:00PM
UK Regulatory
TIDMESG
RNS Number : 8172I
eServGlobal Limited
29 November 2018
eServGlobal Limited
Business update
29 November 2018
eServGlobal Limited ("eServGlobal", or the "Company") (LSE:
ESG.L & ASX: ESV.AX), a pioneering digital transactions
technology company, is pleased to provide the following business
update regarding the HomeSend JV following the Company's successful
GBP19.0m fundraise in September 2018.
HomeSend update
On 27 September 2018, it was announced as part of the Company's
fundraising that MasterCard had proposed a EUR50.0 million capital
raise which had, in principle, been approved by the HomeSend board.
Since that time, there have been further discussions on the optimal
quantum of funds to be raised by HomeSend, which is now expected to
total EUR47.0 million (subject to the applicable foreign exchange
rates, as well as on the timing and structure of the funding).
It has now been agreed that a first tranche of funding will be
provided in the amount of approximately EUR6.1 million for initial
2019 HomeSend capability investments and working capital purposes.
This tranche of funding will be by the issue of new shares in
HomeSend SCRL to be offered pro rata to the existing shareholders
in HomeSend SCRL. Mastercard has indicated that it will participate
and eServGlobal will subscribe and pay for its pro rata allocation
of the new shares by 30 November 2018, ensuring that the Company
maintains its 35.68% holding in HomeSend. Regarding the remainder
of the EUR47.0 million, detailed discussion and execution planning
around timing is ongoing.
HomeSend is progressing well, and revenue plans for 2019 are in
line with the update given to the market at the time of the recent
eServGlobal capital raise. The average transaction value recently
has markedly improved driven by newer B2B volumes. Since the
eServGlobal fundraise a further number of banks have also
successfully conducted initial live transactions on the HS
platform, although volumes will only follow according to each
bank's own commercial priorities and arrangements.
The Core Business
The Board of eServGlobal has previously reported interest from
third parties wishing to acquire the core software business.
Conversations are ongoing and progressing well with several
parties. At this stage, the likely outcome remains unknown but the
Board are cautiously optimistic of finding a favourable resolution
and will update shareholders once further information can be
provided.
For further information, please contact:
eServGlobal www.eservglobal.com
Tom Rowe, Company Secretary investors@eservglobal.com
Andrew Hayward, Chief Financial Officer
Alison Cheek, VP Corporate Communications
finnCap Limited (Nomad and Broker) www.finnCap.com
Corporate Finance: Jonny Franklin-Adams / T: +44 (0) 20 7220
Anthony Adams / Hannah Boros 0500
Corporate Broking: Tim Redfern / Richard Chambers
Tulchan Communications LLP www.tulchangroup.com
Jonathan Sibun / Matt Low T: +44 (0)207 353 4200
About eServGlobal
eServGlobal (AIM:ESG, ASX:ESV) is a pioneering digital financial
transactions technology company, enabling financial and
telecommunications service providers to create smoother
transactions for their customers through deep technical expertise
and rapid implementation. Built on the latest technology platforms,
eServGlobal offers a range of transaction services including
digital wallets, commerce, remittance, recharge, rapid service
connection and business analytics. eServGlobal combines more than
30 years' experience, with an agile, future-focused mindset, to
align with the requirements of customers and partners around the
globe.
Together with Mastercard, eServGlobal is a joint venture partner
of the HomeSend global payment hub, enabling cross-border transfer
between bank accounts, cards, mobile wallets, or cash outlets from
anywhere in the world.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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