Telenor to sell Norcom Networks to Wireless Matrix
Fornebu
3 minute read
Telenor Mobile Communications AS (TMC) has signed an agreement to sell Norcom Networks Corporation (of which TMC owns approximately 90 percent) to the Canadian listed company Wireless Matrix Corporation. Consideration for the transaction is a maximum of 15,461,647 common shares of Wireless Matrix, which number of shares may be reduced in the discretion of Wireless Matrix through the payment of up to $18 million USD in cash.
Telenor made its initial investment in Norcom Networks Corporation. (Norcom) in 1994. The company provides real time, interactive wireless data services via satellite. Norcom offers 100 percent geographic coverage throughout North America, message latency measured in seconds rather than minutes and interoperability with existing wireless networks. The company is headquartered in Reston, Virginia.
Wireless Matrix is a developer and value-added provider of global fax and data network services to the industry, using wireless services and the Internet as communications channels. Changing the way data moves, Wireless Matrix provides a wide range of integrated remote data solutions. Wireless Matrix is listed at the Toronto Stock Exchange (ticker: WRX) and is headquartered in Calgary, Alberta.
Closing of the transaction is scheduled for February 28, 2001, but may be postponed until April 30, 2001, and is subject to required regulatory approvals, including that of the Toronto Stock Exchange, and various other customary pre-closing conditions. The transaction will be accomplished by a full takeover of Norcom by Wireless Matrix. After closing, and assuming the settlement of the $18 million USD in shares, it is expected that Norcom shareholders will own just over 40 % of the issued and outstanding common shares of Wireless. Telenor will hold approximately 90 % the shares received from Wireless Matrix. The remaining shares will be held by other minority owners.
Telenor will be repaid USD 7 million in loans and approximately USD 5 million of additional payments will be made to other Norcom creditors.
Wireless Matrix is a developer and value-added provider of global fax and data network services to the industry, using wireless services and the Internet as communications channels. Changing the way data moves, Wireless Matrix provides a wide range of integrated remote data solutions. Wireless Matrix is listed at the Toronto Stock Exchange (ticker: WRX) and is headquartered in Calgary, Alberta.
Closing of the transaction is scheduled for February 28, 2001, but may be postponed until April 30, 2001, and is subject to required regulatory approvals, including that of the Toronto Stock Exchange, and various other customary pre-closing conditions. The transaction will be accomplished by a full takeover of Norcom by Wireless Matrix. After closing, and assuming the settlement of the $18 million USD in shares, it is expected that Norcom shareholders will own just over 40 % of the issued and outstanding common shares of Wireless. Telenor will hold approximately 90 % the shares received from Wireless Matrix. The remaining shares will be held by other minority owners.
Telenor will be repaid USD 7 million in loans and approximately USD 5 million of additional payments will be made to other Norcom creditors.