LaNetro Buys 52.5 Percent Majority Stake in Monstermob For $66.5 Million

So the Monstermob acquisition mystery has ended and no, it is not a complete sale: Spanish mobile content firm LaNetro Zed is to buy a majority stake in Monstermob in a deal worth about $66.5 million…Zed will buy 68 million new shares at 50p, equivalent to 52.6 per cent of its share capital, and said it would not increase stake for full buyout anytime soon.
This will give the troubled firm some more financial leeway after it got hammered in the Chinese market, due to regulations and other issues.
Hemscott: To underline the changed circumstances, Monstermob says that following the subscription, it will become a subsidiary of LaNetro, which will have ‘a major influence on the direction of the Monstermob as well as the ability to appoint or remove management at will’.
Also, an update on current trading: The group says that since its interim results in September, overall trading has been broadly in line. Its businesses in South-East Asia, Russia and the USA ‘appear well placed’ as they go into 2007. The UK market, however, has remained ‘very difficult’, with the business continuing to trade at a monthly loss, despite significant efforts to re-position it. The group is ‘actively reviewing its options’ for the UK operations.

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