Romania's Bitnett unit in MoU on Nordic Growth Market reverse listing
BUCHAREST (Romania), September 27 (SeeNews) - Romanian IT group Bittnet Systems [BSE:BNET] said on Friday that the shareholders of its Dendrio Solutions signed a non-binding Memorandum of Understanding (MoU) with Swedish manufacturer of health food products Hemply Balance, seeking the reverse listing of Bittnet’s digital infrastructure unit on the Nordic Growth Market, NGM.
The transaction, which values Dendrio between 37.5 million euro ($41.8 million) and 40 million euro, will be paid in Hemply shares resulting in Hemply’s current 1,500 shareholders holding a 4% stake in the combined company and Dendrio shareholders controlling 96%, Bittnet said in a report filed with the Bucharest Stock Exchange.
The transaction is expected to close in the fourth quarter of 2024, subject to several conditions, including satisfactory reciprocal due diligence, the signing of a share purchase agreement, and necessary approvals from NGM and Hemply's extraordinary general meeting. Additionally, clearance from the Swedish Financial Supervisory Authority and Bittnet's shareholder approval is also required. Approval from the Romanian competition watchdog and foreign direct investment clearance may also be required.
Once the transaction is completed, the resulting combined entity will rank among the top 20 companies on the NGM, with over 1,500 shareholders, positioning Bittnet to further develop its digital infrastructure business on a European scale and providing access to capital for organic growth and acquisitions.
Bittnet shares changed hands 0.14% higher at 0.214 lei as at 1541 CET on Friday on the Bucharest Stock Exchange.
($=0.8965 euro)