Neteller's Calgary Premises Sold

Published: Monday, February 11, 2008 Online-Casinos.com

NETELLER'S CALGARY PREMISES SOLD

Cdn 33.5 million realised for e-cash processor's principal property

Online e-cash processor Neteller plc reports that it has finalised the sale of its principal property in Calgary, Canada.

The sale went through Neteller subsidiary NT Services Building Corp., and the buyer was Leben Investment Corporation, which paid a total consideration of Cdn$ 33.5 million, to be paid to the now Isle of Man-based group on 31 March 2008.

Neteller will continue to lease two areas of the property from Leben on usual commercial terms for a period of three years and five years respectively following the sale.

Company spokesmen said the sale price is very close to the net book value of the property and as a result there will likely be no significant gains or losses on disposal. Any marginal gains or losses that may arise will be reflected in Neteller's 2008 results.

Calgary was a major Neteller operational centre at the height of the e-cash processor's success and before its run-in with the US Department of Justice, when two founders and major shareholders of the company were detained. In long-running negotiations the company eventually agreed to pay a whopping US$ 136 million settlement and to stay out of the US market.

Since then the company has concentrated in geographical diversification with some success.