Dublin-based smartphone content supplier Zamano is “close” to agreeing a deal to sell the company’s remaining assets as part of its wind-down.
The company — which has traditionally provided messaging, advertising and payment support tools to mobile communications providers — announced earlier this year its intention to seek a managed exit after regulatory changes heavily hampered its growth potential in the UK and other markets.
A winding down of the company and return of cash to shareholders has been planned since March.
At its AGM in Dublin, yesterday, management told shareholders that they are in discussions with a number of parties interested in buying its premium SMS services business and said it “believes it is close to executing a transaction with a preferred party.”
It is believed a deal could be concluded within the next six months — although the company stressed that there is no certainty that any transaction will be completed. If a deal does happen, the purchase price will be nominal and Zamano will have to make a cash contribution to provide the business with adequate working capital.
However, Zamano’s chief aim is to protect its cash position and shareholders are set to share in the €5m-€6m in cash on its balance sheet when the business is fully wound down. Zamano’s share price was down by 2.6% in London yesterday.
This time last year, Zamano was eyeing higher-end acquisition targets.
It had come close to being acquired in 2015 only for an indicative offer to come to nothing.
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