Mobile solutions provider Globo sells Greek operation

International mobile solutions provider Globo has sold its majority share in subsidiary Globo Technologies S.A. (GT) for a total consideration of €11.2m.

The divestment saw GT's seven-strong management team execute a management buy-out for a 51% share in the company.

GT operates in Greece and includes the Group's traditional e-business software, digitisation and software integration businesses that interact with Greek private and public organisations.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Commenting on the divestment, Globo Plc's Chief Executive Officer Costis Papadimitrakopoulos said:

"Since our IPO on the AIM Market in December 2007, the Group has substantially developed its international mobile business, which now accounts for the majority of Group profits, whilst continuing to grow its Greek operations."

"The divestment of GT will allow the Group to focus exclusively on the profitable expansion of its international mobile operations. Retaining an equity interest in the Greek business demonstrates our faith in its prospects and ensures a smooth transition to the acquiring management team."

Globo has a market capitalisation of £78m. In September, the group published its half yearly report revealing a rise in revenue, earnings before interest, taxes, depreciation and amortisation [EBITDA] and Earnings per share.

Revenues were up 29% to €25.22m compared to €19.61m in the first half of 2011, which resulted in a rise in EBITDA of 48% to €10.87m, versus the €7.35m seen in the first half of 2011.

Earnings per share increased 56% to €0.014, well above the €0.009 achieved in the first half of 2011.

The share price fell 1.10% to 22.50 pence by 10:59 GMT.