Join our community of smart investors

VEBNET TO REVERSE INTO STOCKBOURNE SHELL

Vebnet, a provider of employee benefit software, is reversing into former property company Stockbourne, in a deal valued at GBP7.1m. Stockbourne, now a cash shell with over GBP1.75m in the bank, will simultaneously move down from the main market onto
Published on December 19, 2002

Vebnet, a provider of employee benefit software, is reversing into former property company Stockbourne, in a deal valued at GBP7.1m. Stockbourne, now a cash shell with over GBP1.75m in the bank, will simultaneously move down from the main market onto Aim, and change its name to Vebnet. The GBP7.1m consideration will be satisfied by the issue of new shares. Vebnet chief executive Gerard OiNeill said that the main motive for the deal was to acquire the GBP1.75m and use it to develop Vebnetis products. It should see the company through to break-even.

Vebnetis Fix-&-Flex product allows firms to administer and deliver information to staff on benefits such as pensions, dental care and life insurance. It is currently installing the technology for five companies, having completed its first deal in April. That helped the group book sales of GBP25,000 for the year to June. It also lost GBP1.5m in the same period.

The deal is subject to ratification at an EGM to be held on 10 January. Following approval, current Vebnet shareholders n including venture capital group Cross Atlantic Capital n will hold 77.5 per cent of the firm. A consolidation of every 100 existing 1p share for one new ordinary GBP1 share will then follow. Following the deal, Vebnet is expected to be valued at around GBP9m.

IC VIEW

Vebnetis rate of acquisition of customers looks encouraging. It is currently bidding for over GBP1m-worth of business and reckons it should win at least 20 per cent of that. The broker is Brewin Dolphin.