Econet subsidiaries Est Media Group, Szigetra Invest and Volt Invest will delay payment of the Ft 1.8 billion purchase price for Sziget Kulturális Menedzser Iroda, as the festival organiser is not expected to meet profit targets this year.
The payment, originally scheduled for last Friday, will not be made until October 2010, Econet announced.
Est Media acquired 26% of Sziget in 2007 in exchange for Econet shares valued at Ft 1.1 billion. It was agreed that Sziget owners Károly Gerendai and Gábor Takács would sell a 25% stake to Econet this year for Ft 1.8 billion if Sziget and related events generated profits of at least Ft 500 million for 2009. This target has now been postponed to 2010. Econet plans to acquire 75% in Sziget gradually, at a speed depending on the company’s profits.
The acquisition process will be completed in 2013, one year later than planned, Napi Gazdaság adds.
Econet also announced that it has signed off on the sale of its 76.8% stake in internet service provider Externet, but is awaiting approval from Externet’s chief creditor Commerzbank.