Transaction

Advised: Goldvalley Limited on the sale of its 30% stake in Telco Global Communications LTD. to Econophone

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Deal summary

GoldValley Limited sold its 30% stake in Telco Global Communications LTD., the provider of telecommunication services, to Econophone, the American telecoms operator.

  • GoldValley Limited sold its shares in Telco to Econophone with all rights attached or accruing to them at completion.
  • The 30% stake was transferred to Econophone free from liens, equities, and all charges and encumbrances and from all other possible claims by third parties
  • Econophone was entitled to exercise all rights attached to the shares including all dividends, distributions and all return of capital declared
  • The deal included an issuance by Econophone of loan notes amounting to USD 9,824,500 and USD 4,210,500 respectively to GoldValley Ltd.
  • ARC Associates, Goldvalley and Goldvalley's legal advisers conducted a series of discussions and exchanged documents with Econophone and its advisers over a period of five months in deliberation of valuation, price and terms

About Telco Global Communications Ltd.

Telco Global Communications Ltd. (“Telco”) was a rapidly growing provider of telephony services in the UK that was 70% owned by Econophone, Inc. in the US.Telco Global Ltd. provided fixed line telecommunication services. The Company served the residential and business-to-business (B2B) markets. Telco Global operated in the United Kingdom.

About Goldvalley Limited

Goldvalley Limited was a 30% shareholder of Telco. It was headed by Asher Gratt and Bernard Lebrecht in 1998 when the sale to Econophone was made. The company was dissolved in 2013.

About Econophone

In 1999, Econophone was renamed to Destia Communications Inc. Destia Communications, Inc. provided domestic (US) and international long distance telecommunications services. The Company also offered its customers various retail telecommunications services, including calling card, prepaid services, and wholesale transmission services. Destia Communications Inc. was acquired by Viatel in late 1999

  • Deal value

    $48m

  • Location

    London, UK

  • Sector(s)

    Telecoms

  • Deal type

    Sale

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