TIDMOPAY
RNS Number : 8533N
Optimal Payments PLC
21 May 2015
For immediate release
OPTIMAL PAYMENTS PLC
Trading in line with expectations
Strong performance in first four months of 2015
LONDON, MONTREAL and NEW YORK (21 May, 2015) - Optimal Payments
Plc (LSE AIM: OPAY, "Optimal Payments" or the "Group") announces a
trading update for the year to date ahead of the Annual General
Meeting taking place later today.
Revenue and EBITDA in US Dollars (the Group's reporting
currency) for the year to date for Optimal Payments' existing
operations are in line with expectations notwithstanding the recent
weakness of the Euro. The consolidation of Meritus and GMA in the
US, acquired in July 2014, has progressed well and these businesses
are being managed as one integrated business unit together with the
NETBANX Straight Through Processingbusiness. The strong trading we
experienced in 2014 has continued in 2015 with both the NETELLER
Stored Value and NETBANX businesses performing very well.
Acquisition of Skrill
The principal focus of corporate activity in this financial year
has been on the acquisition of Skrill for a total consideration of
EUR1.1 billion and its associated funding.
In the period since the announcement of the transaction, the
equity element of this funding has been accomplished through a
fully underwritten rights issue of five new ordinary shares at 166p
for every three shares held to raise a total of GBP451 million.
Acceptances were received from qualifying shareholders for almost
97 per cent. of the total new ordinary shares being offered with
the balance being placed with institutional investors at 290p. In
addition, a funding term loan of EUR500 million, also fully
underwritten by BMO, Barclays and Deutsche Bank, has been
successfully raised together with the arrangement of a EUR78
million revolving credit facility.
Completion of the acquisition is now subject to the satisfaction
of certain conditions, which primarily comprises regulatory
approval by the UK's FCA, which is expected to be received in Q3.
On completion, the vendors of Skrill will receive the agreed cash
consideration of EUR720 million and approximately 37.5 million new
ordinary shares in Optimal Payments, representing 7.9 per cent. of
the enlarged issued share capital of the Group. These shares are
subject to lock-in arrangements for a period of 180 days from the
date of issue.
Management has continued to plan the integration of Skrill into
the Group with a dedicated internal team addressing all aspects of
combining the two groups and focusing in particular on the
combination of Skrill's Stored Value businesses with NETELLER. As
originally announced, the Group expects to generate some $40
million of synergy benefits by the end of the first full year of
ownership to 31 December 2016. These benefits are in addition to
the customer and geographic diversification and the increased scale
and market presence of the enlarged Group.
At the time of the announcement of the transaction, it was
stated that Skrill was due to complete a small acquisition of its
own - Ukash, a pre-paid e-money payment provider. This acquisition
completed on 31 March 2015 and will be merged into Skrill's
paysafecard business.
Main market listing
As a consequence of the substantially increased size of the
enlarged Group, it was announced that Optimal Payments would seek
admission to listing of its ordinary shares on the premium segment
of the Official List of the UK Listing Authority and admission to
trading on the London Stock Exchange's main market for listed
securities. The process to move from AIM to the main market is
underway and, following such a move, it is expected that the
Company's ordinary shares would be eligible for inclusion in the
FTSE 250 Index of the London Stock Exchange.
Half Year results and Capital Markets Day
Half Year results for the existing Optimal Payments businesses
to 30 June 2015 are expected to be announced on 26 August 2015.
The Group intends to host a Capital Markets Day during Q4 for
investors, analysts and lenders. At the event, management will set
out its strategy for the combined businesses of Optimal Payments
and Skrill and report on integration progress. It is expected that
this event will take place in November 2015 and will be accompanied
by a trading update.
Commenting on today's trading update, Joel Leonoff, President
& CEO, said:
"We were delighted with the response from all of our
shareholders to the acquisition of Skrill which is a real game
changer for us. The enlarged Optimal Payments, on completion, will
become a leading player in the markets we serve and create
additional opportunities for further profitable growth. It will
also deliver benefits to our shareholders in the shape of accretive
earnings from next year, enhanced liquidity from the intended move
to the main market and, in due course, inclusion in the FTSE
250."
Dennis Jones, Chairman of Optimal Payments, said:
"On behalf of the Board, I'd like to thank our shareholders for
their support and our management team and staff for their hard work
in turning the acquisition of Skrill from an aspiration into a
reality."
About Optimal Payments Plc
Optimal Payments is a global provider of online payment
solutions, trusted by businesses and consumers in over 200
countries and territories to move and manage billions of dollars
each year. Merchants use the NETBANX(R) platform and services to
simplify how they accept credit and debit card, direct-from-bank,
and alternative and local payments; and the NETELLER(R) service to
increase revenues and capture new customers. Consumers use the
multilingual and multicurrency NETELLER and Net+(R) Card
stored-value offering to make secure and convenient payments. In
addition, Optimal Payments Card Services, another division of
Optimal Payments, provides innovative prepaid products and services
to merchants. Optimal Payments Plc is quoted on the London Stock
Exchange's AIM, with a ticker symbol of OPAY. Subsidiary company
Optimal Payments Ltd is authorized and regulated as an e-money
issuer by the UK's Financial Conduct Authority (FRN: 900015).
For more information on Optimal Payments visit
www.optimalpayments.com or subscribe at
http://www.optimalpayments.com/media/email-alerts.
--
For further information contact:
Optimal Payments Plc
Jessica Stalley, Head of Investor Relations
+ 44 207 182 1707
investorrelations@optimalpayments.com
Canaccord Genuity Limited(Nominated Adviser & Broker)
Simon Bridges / Cameron Duncan
+44 (0) 20 7523 8000
Media Contacts - United Kingdom:
Tavistock Communications
Simon Hudson/Andrew Dunn/Simon Fluendy
+44 20 7920 3150
optimal@tavistock.co.uk
Media Contacts - Canada:
Zenergy Communications
Linda Farha/Beverly Brooks
+1 416-591-5461
opay@zenergycom.com
Media Contacts - United States:
Feintuch Communications
Richard Anderson/Emily Simmons
+1 718-986-1596 / +1 212-808-4904
optimal@feintuchpr.com
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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