Monstermob Investors Vote For Refinancing; Higginson Brought Back To Run The Business

Reuters reports Monstermob shareholders back a refinancing plan that effectively gives Spain’s LaNetro Zed a 52 percent stake in the firm, giving thumbs down to a rival takeover plan from China’s mobile content group Linktone. Linktone had promised a $78 million bid if the plans had been rejected, adding it would not make the offer if shareholders came out in favour of Zed. The Zed deal required at least 75 percent of shareholders who voted to accept it and at an extraordinary general meeting this morning, over 80 percent voted in favor.

The Guardian quoted Hans Snook, former head of Orange, who detailed why the vote board voted for Zed’s refinancing plan. “We weighed the risks up against a guaranteed financial restructuring and immediate financial support from the Zed proposal and we continued to support the Zed proposal.”

Update: The Guardian has just reported Spain’s LaNetro Zed has ousted Hans Snook (mentioned above), as well as Monstermob CEO Niccolo de Masi and non-executive director Richard Faber. Martin Higginson, Monstermob’s founder and former CEO, has been brought back to run the business. Shareholders had pushed him out in June after the company issued a dire profits warning.

From the release, the actual terms of the deal are: “Zed is to subscribe for 34 million pounds (US$66.7 million) of new Ordinary Shares in MonsterMob at a price of 50 pence per share. This will result in the issue of 68,000,000 new Ordinary Shares in MonsterMob, currently equivalent to approximately 52.6% of the ordinary share capital of MonsterMob, enlarged by the issue of Ordinary Shares to Zed.”
Related:
Monstermob Takeover Decision Still in Murky Waters
Monstermob Urged To Stay with Spanish Deal