March 12, 2008, Hod Hasharon, Israel - Leadcom Integrated Solutions Ltd. ('Leadcom' or 'the Company', AIM: LEAD), a leading international provider of innovative telecommunication solutions, announces that it has received a non-binding offer (the "Offer") from Old Lane (UK) LLP ("Old Lane"), for an investment by Old Lane in the Company. Old Lane currently holds 5,000,000 shares in the Company, representing 4.15% of the Company’s issued share capital.
The Offer follows a preliminary approach to the Company that was announced on February 25, 2008.
The Offer provides that Old Lane would subscribe for between 16.4 million and 24.6 million shares at £0.31 per share (or £0.34 if the Company records a net profit of over US$10 million for the financial year ending December 31st, 2008), raising a total of US$10-15 million. The injection of funds into Leadcom will improve the Company's balance sheet and should enable significant additional opportunities in the Indian market to be funded. If the transaction is completed, following the issue of shares the holding of Old Lane would be between 14.42% and 18.90% of the Company's issued share capital, on a fully diluted basis. The shares issued would be subject to a 6-month lock up period.
Under the terms of the Offer, Old Lane would also be entitled to appoint two Directors to the Company's board.
In addition, the Company would grant to Old Lane, at no additional cost, an option for 30 months at £0.40 per share to purchase such number of shares that will equal two-thirds of the number of shares that are actually subscribed for by Old Lane in the first phase.
The transaction is subject (amongst other matters) to due diligence, the duration of which is projected to be 45 days and is to commence immediately, and the execution of a definitive agreement, as well as the approval by the Company’s board of directors and shareholders.
Due diligence with Electra Ltd., announced February 21, 2008 is proceeding as scheduled.
Enquiries:
Yael Margoninsky - Leadcom
Tel: +972 9 769 0011
Andrew Godber – Panmure Gordon
Direct: +44 (0) 20 7614 8385
