TROUBLED IRISH electronic payments group Payzone yesterday sold its mobile top-up businesses in Germany, Poland and the Netherlands to Quam Equity International for just €2.2 million.

This was less than the €4.01 million net asset value of the same businesses at March 31st last. The subsidiaries have cash balances of €4.4 million, which form part of the deal. The units contributed €4.71 million in profit, before exceptional items, to Payzone’s financial performance for the year to September 30th, 2008.

Payzone said it would retain certain “parent company guarantees” relating to the businesses for an unspecified transitionary period.

The Irish company, which is listed on the junior AIM market in London, said the deal, which closed yesterday, would result in the release of deposits and financial guarantees of €8.9 million provided by the group as security to suppliers. The sale proceeds are to be used to reduce its near €290 million debt, it added.

Payzone’s terminal maintenance business in the Netherlands and its German ATM operations are not part of the deal. This transaction sees the Irish company exit the Polish market.

Quam owns ICP Group, a provider of electronic payment systems, payment terminals and terminal services in Europe.

Payzone chief executive Mike Maloney said: “The businesses were not a strategic fit in terms of where we are taking the company going forward. We got the best price we could for them.”

This is the latest disposal by Payzone in the past year. Last October it sold its businesses in France, Italy and Spain for €20 million, and wrote off €4.2 million they owed it. In January it sold its Open Loop gift business.

Payzone shares closed yesterday in London at 1.31 pence. They had debuted at 76 pence in December 2007. Its market value is now just £5.73 million (€6.27 million).