Corporate Internet services company Cyberhost has revised the payment terms of the disposal of Internet e-kiosk business CyberXpress.
The R4.2 million disposal of the division to Cyberkiosks, announced in mid-August, was to have been paid in cash of R300 000 on signature of the agreement, with the balance being paid on the effective date of the sale.
The R300 000 has been paid. The terms for the balance have been altered to allow Cyberkiosks to pay R900 000 on the effective date, R1.5 million on or before 1 September 2001, and R1.5 million on or before 1 June 2002.
"The balance of the purchase price outstanding from time to time bears interest at the prime rate of First National Bank," Cyberhost says.
"Appropriate security for the payment of the purchase price, together with interest thereon, has been provided to the satisfaction of the company."
It adds that the remaining terms of the deal are unchanged.
The disposal forms part of the restructuring exercise at Cyberhost, which recently reported an operating loss for the interim six months to June 2000.
The restructuring exercise, which included the sale of the loss-making residential dial-up division, has been completed, and the company believes its performance will improve as a result.
Related stories:
Loss-making Cyberhost completes restructure
Share
