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Sirma Group to Buy Ontotext’s Shares from NEVEQ

Post

13 Mar 2018

Subject

Sirma Group

Sirma Group Holding [BUL:SKK] signed a deal to acquire a stake of 26.06% for 4.2 million euro ($5.2 million) from the local private equity fund New Europe Venture Equity L.P.(NEVEQ), which is a shareholder in the semantic technology company Ontotext JSC. Sirma Group Holding held a 58.51% stake in Ontotext at the end of 2017.

Sirma Group Holding will pay the price in three tranches – the first tranche, of 1 million euro, is due upon transfer of the shares. Sirma Group Holding intends to finance the tranche through a bank loan. The second tranche, also of 1 million euro, is due until end-June 2018. The final tranche, which amounts to 2.2 million euro, will be due within three days following a successful completion of an increase of the share capital of the buyer, but not later than 15.03.2019.

Under the deal, the software developer pledges as collateral a total of 5.9 million Sirma Group Holding shares, owned by three members of its board of directors.

Pledge № 1:

Type of pledge: 1 968 131 shares from the capital of Sirma Group Holding, property of Tsvetan Borisov Alexiev, each with nominal value of BGN 1.00 (one), registered in the Central Depository.

Pledge № 2:

Type of pledge: 1 968 130 shares from the capital of Sirma Group Holding, property of Atanas Kostadinov Kiryakov, each with nominal value of BGN 1.00 (one), registered in the Central Depository.

Pledge № 3:

Type of pledge: 1 968 130 shares from the capital of Sirma Group Holding, property of Georgi Parvanov Marinov, each with nominal value of BGN 1.00 (one), registered in the Central Depository.

1 968 131 shares from the capital of Sirma Group Holding, property of Tsvetan Borisov Alexiev, each with nominal value of BGN 1.00 (one), registered in the Central Depository.

Read the full disclosure Ontotext contract EN.