Matomy Signs Deal to Offload Debt-Causing Subsidiary
The Israel-based digital marketing company will sell Team Internet to London-listed Centralnic Group for almost $60 million
Matomy has been buying up Team Internet in increments since 2012 from Rainmaker Investments GmbH. In 2018, Matomy raised $30 million on the Tel Aviv exchange to increase its stake in Team Internet from 80% to 90%. According to the agreement between the two, Matomy was required to buy the remaining 10% by November 30, 2018, for $18 million. The company attempted to renegotiate the financial terms of its outstanding bonds to raise the needed capital, leading bondholders to take action against it. Its failure meant Rainmaker was given the option of buying back as much of the stock as it wanted at a 40% discount.
The Tel Aviv Stock Exchange. Photo: Orel Cohen
According to Matomy's Friday announcement, prior to the sale to Centralnic it will acquire the remaining 10% from Rainmaker, now worth GBP 19.05 million (approximately $24.67 million), according to the original agreement.
The agreement is still subject to the approval of Matomy's shareholders, set to convene on Thursday, and to a GBP 40 million (approximately $51.7 million) bond issuance Centralnic intends on completing before the end of December.
