Structural changes for better focus and growth
In a changing market, it has become clear that Talkpool’s structure is not optimal for the focus that allows for best shareholder return. It is also apparent that the parts of the company would each be worth much more than the current sum of the parts. Therefore, the Board of Directors has initiated a comprehensive review to investigate to what extent certain operations can be restructured, or in some cases divested, in order to create shareholder value, but also to ensure that the Group has an optimal structure for the rapid growth the company is facing.
Operations with a low contribution to Talkpool, that can constitute a higher contribution to someone else's activities have been identified and some discussions have already been initiated. The Board will inform about these processes later in the year, but already now wants to be clear that restructuring is done with shareholder value and long-term business acumen as the main guiding principles.
The company's capitalization model is also undergoing change and this will, in combination with the restructuring, lead to an enhanced business model. Central financing of our wide-spread operations is not optimal, so the company has already started to work with more local financing. Borrowing money locally, and in the same currency as the revenues, reduces financing costs for the group and the need for currency hedging. It’s obviously easier to obtain short- and long-term financing in local markets, and several of our subsidiaries have strong cash flows that allow loan financing to support the growth phase the company currently is entering. Our subsidiaries currently have unused bank loans and cash amounting to approximately EUR 2 million.
For more information, please contact:
Erik Strömstedt, CEO Talkpool
Tel: +41 81 250 2020
erik.stromstedt@talkpool.com
About Talkpool
Talkpool provides IoT solutions and telecommunication network services globally. Through its cutting-edge technical expertise, long experience and agile business model, Talkpool offers global telecom vendors and operators high-quality services on short notice no matter the location. Moreover, Talkpool is one of few companies with actual solutions and contracts in place in the exciting IoT-market. FNCA Sweden AB, +46(0)8-528 00 399 info@fnca.se, is Talkpool’s Certified Advisor. www.talkpool.com
This information is insider information that Talkpool AG is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11.50 PM CET on August 28, 2019.