From Government of Indonesia

Sun in New Deal on Cellular Content

Media company Sun Business Network (SBN), which reached an agreement to buy Maestro Mind International last month, has struck a new deal to purchase the holding company which owns 95% of PT Monstermob Indonesia, a leading mobile media service provider in Indonesia, Singapore’s Business Times reported on Friday (5/1/07).

SBN's wholly owned subsidiary G-Mobile will now pay a conditional $4.96 million for 84.2% of Maestro Mind, the company said in a statement Thursday.

The agreement will replace the previous one, in which G-Mobile was to pay $6.2 million to acquire full ownership of Maestro.
The revised agreement also contains a call and put option for G-Mobile to buy the remaining 15.8% of Maestro Mind at a price equivalent to four times the net profit after tax of PT Monstermob.

G-Mobile can also buy a 20-year freely assignable call option at four times the net profit after tax of PT Monstermob.
The second option allows G-Mobile to purchase the 5% interest in PT Monstermob not owned by Maestro Mind for $1.

The revised purchase price is based on PT Monstermob hitting sales of at least $3 million in the financial year ended December 2006, and earnings before interest, tax, depreciation and amortization (Ebitda) margin of not less than $1.8 million.

G-Mobile is also given a profit guarantee of $1.4 million for financial year 2007, calculated based on the net profit after tax of PT Monstermob, a corporate tax rate of 20%, an annualized turnover of not less than $3 million in 2007 and an Ebitda margin of not less than $1.8 million.
_________________________
Jawawa.net: Indonesian Business and Investment News Aggregator