- Startek ( NYSE: SRT ) stock soars 11.4% premarket after the firm notifies that ESM Holdings Limited, an indirect wholly-owned subsidiary of the company, has entered into a definitive share purchase pact with Arabian Internet and Communications Services Company (Solutions) to divest its stake in Contact Center Company to Solutions.
- Startek owns 51% ownership interest in CCC with the remaining 49% ownership interest held by STC.
- Per the terms, Startek and STC will divest their respective ownership interest in CCC at an enterprise value of SAR450 million, subject to debt-like and working capital adjustments.
- The Startek stake values at $61.2 million subject to closing adjustments and capital gains taxes.
- It is anticipated that Startek will utilize the net proceeds from the transaction to pay down amounts outstanding under its secured revolving credit facility and senior term loan facility agreement.
- The divestiture further strengthens balance sheet, allows Startek to focus on growing core business.
- The deal is expected to be completed during the second quarter of 2023.
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Startek shares soars 11% after agrees to divest interest in Contact Center Company