Wed, 02 Dec 2009 2:10p.m.
TeamTalk Ltd is increasing its shareholding in CityLink Ltd from 90 percent to 100 percent to give it more flexibility.
The four owners of CityLink will swap their investment for 386,598 TeamTalk shares and a one-year option to purchase a further 386,598 TeamTalk shares at $2.24.
In 2006 TeamTalk paid $12.68 million in cash and debt in exchange for 67 percent of CityLink, a dedicated fibre optic broadband company. It offers services including fibre optic links, public LAN services and has fibre networks in major cities.
TeamTalk said it was happy with CityLink's performance since it first invested in the company three years ago.
Earnings before interest, tax and depreciation have grown from $2.5m to $5m a year.
NZPA