Gibraltar FSC Veto Torpedoes IDT Acquisition
March 23, 2009 (InfoPowa News) — Neovia's (formerly Neteller) proposed acquisition of IDT Financial Services Holdings Limited has been abandoned, the online financial group announced just before the weekend.
Originally announced at the end of 2008, the proposal has now been shelved following a decision by the Gibraltar Financial Services Commission that it is unable to consent to the acquisition.
Neovia had anticipated that the FSC-related condition to the proposed acquisition would be achieved within a number of months of announcement of the transaction, and made every effort within its power to satisfy this condition, a company spokesman said. However, a substantial underlying shareholder of the company, who under Gibraltar banking law was to become a controller of IDTFSH and about whom information therefore needed to be provided to the FSC in connection with the approval process, refused to provide the requisite notification to the FSC.
"The FSC has in these circumstances determined that while it does not have any objections to the proposed acquisition of IDTFSH by NEOVIA, it is unable to consent to the change of control of IDTFSH from IDT Corporation to NEOVIA," the Neovia spokesman said.
"The Company is currently reviewing this situation in conjunction with its advisers and will provide a further update to shareholders in due course," he added.