Porta Comms increases take in Hong Kong, Australian start-ups

7th Dec 2016 08:32

(ShareCast News) - AIM-listed Porta Communications is to increase its stake in the Hong Kong and Australian businesses of Newgate Communications.The company is to increase its shareholding in start-ups Newgate Australia and Newgate Hong Kong, which the company founded.Porta founded Newgate Australia as a 51% subsidiary in 2013, with the remaining 49% held by members of the Newgate Australia management team and a number of other employee shareholders.The company is to buy an additional 29% of Newgate Australia in exchange for shares at 1p each, to be staged in two parts: 9% during 2016 and 20% in 2017.So far the company has bought 6.86% of Newgate Australian increasing its interest to 57.86% from 51% for £345,840 to be satisfied by 8.64m shares at 4p each.The company has also bought a further 9% in Newgate Hong Kong, increasing its interest to 60% from 51% for £181,767 at 4.54m share of 4p each.Application has been made to trade the 13.1m shares in AUM expected around 12 December.Gene Golembiewski, finance director at Porta, said: "Both of these start-up businesses, which were funded by Porta, have gained traction very quickly in the initial start-up phase and have contributed significantly to Porta's growth and financial performance; solid proof that our overseas start-up strategy has delivered results and is an incentive for local management which, we believe, will benefit all shareholders."Shares in Porta Communications were up 0.57% to 4.40p at 1059 GMT.