Stream Communications Sells Majority Interest in Stream Poland

Stream Communications Network & Media has closed the previously announced sale of its majority interest in its wholly owned Polish subsidiary, Stream Poland, to Penta Investments.

Penta has acquired a 51.14% interest in Stream Poland through acquisition of existing shares and subscription to new shares. Specifically, Penta has purchased 15,640 shares in Stream Poland from Stream Communications Network & Media for $8.3 million, and 16,900 newly issued shares in Stream Poland for $9.6 million.

Approximately $3.2 million of the proceeds received by Stream Canada from the sale of existing shares were used to retire indebtedness to Barrington Wedgewood. Approximately $2.7 million of the proceeds from the newly issued shares were used to repay a subsidiary of Penta that lent Stream Poland proceeds sufficient to redeem bonds.

The remaining $6.9 million of the proceeds from the newly issued shares will be used to finance further growth of the company.

The transaction received all necessary approvals from the board of directors of Stream Communications, the Polish office for Protection of Economic Competition and other third parties.