Media Release Archive

TEAMTALK TAKES CITYLINK SHAREHOLDING TO 100%

TeamTalk Limited is pleased to announce it is increasing its shareholding in CityLink Limited to 100% in a TeamTalk for CityLink equity swap.

TeamTalk Group Managing Director David Ware says the deal will see CityLink Holdings, which is owned by four current and former employees of CityLink, swap its investment in CityLink for 386,598 TeamTalk shares and a one-year option to purchase a further 386,598 TeamTalk shares at $2.24.

“CityLink is one of the pillars of the TeamTalk group and an iconic company in the New Zealand ICT industry. We have been particularly happy with its performance since we first invested in the group three years ago.

“During that period we have seen earnings before interest, tax and depreciation (EBITDA) grow from $2.5m to $5m and we’re expecting good growth in the future as well.

“The deal increases our economic interest from over 90% to 100% thus giving us more control over one of our strategic assets and therefore provides us with more flexibility,” Mr Ware says.

CityLink’s CEO Neil de Wit, who represents the shareholders who are selling, is also pleased with the outcome.

“It makes more sense for us all to become TeamTalk shareholders rather than be locked into a minority shareholding in an unlisted company.

“With this deal we will remain both employees and investors and our increased stake in TeamTalk means we stay 100% committed to CityLink and the growth strategy that TeamTalk has mapped out,” concludes Mr de Wit.