Potential Sale of Vewd (Opera TV) Minority Stake
As reported to the market on December 20, 2016, Otello had completed the sale of the majority stake in the Vewd Software business (f/k/a Opera TV) (the “Company”) to Moore Frères & Co LLC (“MFC”), which today is the majority shareholder and controls the board of directors of the Company (the “Board”).
On February 20, 2018, Otello Corporation ASA (“Otello”) entered into a share purchase agreement (the “SPA”) for the sale of its remaining ownership stake (approximately 27-28.5%, depending on management options) in the Vewd Software business. The SPA contains certain conditions for completion, such as approval of the sale by the Board and a right of first refusal not being exercised.
Seven weeks after signing the SPA, MFC’s appointed directors on the Board have still not approved the proposed sale, despite Otello’s good faith participation in an unnecessarily extended approval process run by a sub-committee of the Board.
Otello has therefore today filed a claim with the High Court of Justice in England and Wales against MFC and the Company asking for an injunction and expedited trial to compel the Company (acting through its Board) to give its immediate approval to the transaction. The proceedings have been served on both MFC and the Company.
We would add that until the Board has given its approval, Otello is unable to serve notice on the Company and MFC offering them the right of first refusal.
Although Otello remains positive with respect to being able to complete the transaction prior to the long-stop date in the SPA, which has been extended to 20 June 2018, no assurances can be given that such completion will take place.
Further announcements will be given if and when new material information is available.
Petter Lade, CFO
Phone: +47 91143878
E-mail: petterl@otellocorp.com
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