PrimeTel bids for Spidernet, reduces loss

Primetel Plc (PTL.CY) announced its intention to submit a Public Offer to shareholders of Spidernet Services Public Limited (SNET.CY) for the acquisition of up to 100% of the issued share capital of SNET in a share swap valued around EUR 12 mln.
PrimeTel wants to issue 3 new PTL shares and offer them for every 4 SNET shares. For this purpose it has called an EGM seeking shareholder approval to issue up to 33.832.426 new PTL shares that will be offered to SNET shareholders in case all of them accept the offer.
In addition, 1 warrant will be allocated for every 6 new PTL shares for a total maximum new issue of 5.644.738 warrants. The issue of the new PTL shares and warrants will be subject to approval by the EGM to be held on 19 September 2008.
PTL does not currently hold any stake in SNET but it controls through parties considered related to them a stake of 60.59%. The final decision for the submission of the Public Offer will take place on the next business day following the EGM and within 30 days from the announcement of the intention of the Public Offer. In case a Public Offer is officially submitted it will be subject to the approval by the relevant regulatory authorities.
PrimeTel Plc issued its 1H08 results posting a loss of EUR 117.000 vs. a loss of EUR 1.5mln in 1H07.