Listed vending technology company VTL Group today confirmed the sale of its US franchise assets for $US67.5 million ($NZ87 million).
The sale was to Bacon Whitney Corp, an American company owned by Halpern Denny Fund III LP.The Halpern Denny Fund is one of three Boston-based equity investment funds linked to John Halpern and George Denny, with more than $US700 million under management between them.
VTL said the two investors currently held 9.95 percent each in VTL and each had an agreement to purchase additional shares, which would lift those shareholdings to 21.21 percent.
Bacon Whitney bought from VTL’s American arm, Service America, all of that company’s franchising assets, including the 24 seven franchising licenses granted to it, the 64 existing franchises and all its interests in Universal Vending Management LLC and Norcal).
Bacon Whitney paid by way of a five-year subordinated note for $US$67.5m paying 10 percent per annum and convertible after six months at the election of Halpern Denny Fund III into equity securities of Bacon Whitney.
VTL has also agreed to grant Halpern Denny the right to put its shareholding in Bacon Whitney, on the basis of one share in VTL in exchange for each share held.
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