Acquisition of Target
August 16 2010 - 2:00AM
UK Regulatory
TIDMMRM
RNS Number : 0883R
Metrodome Group PLC
16 August 2010
16 August 2010
Metrodome Group plc
('Metrodome' or the 'Company')
Acquisition of Target
Metrodome, (AIM: MRM), the independent all-rights distributor, is pleased to
announce that it has purchased the entire issued share capital of Target
Entertainment Limited ('Target') a wholly owned subsidiary of TEGL Limited
('TEGL').
Founded in 1998, Target is a TV distribution rights management business. It has
a broad international network and a substantial catalogue of rights across a
broad range of genres, including drama, documentary, comedy and kids'
entertainment.
Target's turnover for the year ended 31 December 2009 was GBP13.8m. Target made
a Loss Before Tax of GBP727,000, after exceptional items of GBP438,000. Gross
Assets for the same period were GBP2.8 million. The majority of the loss in 2009
was attributable to reorganisation costs and interest on borrowings, with EBITDA
for the same period showing a loss of approximately GBP70,000.
The total consideration for Target is GBP800,000 of which GBP400,000 is provided
from the Company's resources with the remaining GBP400,000 being provided by the
issue of 4% Loan Notes, convertible by the holder at 2 pence which equates to
a premium of 45% to the mid market price on 13 August 2010. A further GBP700,000
of Loan Notes have been issued on identical terms to provide working capital for
the Enlarged Group. All of these Loan Notes have been subscribed by Mark
Webster, Executive Chairman of the Company.
As Mark Webster is both a Director and significant shareholder of the Company,
the Acquisition and the issue of the Notes are considered to be related party
transactions for the purposes of AIM Rule 13. The Independent Directors, having
consulted with Charles Stanley, the Company's nominated adviser, consider the
terms of the Acquisition to be fair and reasonable insofar as the Company's
shareholders are concerned.
Mark Webster, Chief Executive of Metrodome, commented:
"I am delighted to have completed this acquisition of Target, which was ranked
by Broadcast Magazine as one of the top five most used distributors by
independent producers. Target will provide the Company with penetration into a
well established TV distribution library with circa 6,000 hours of content. As
such I am confident that the strong global network of relationships will form
the basis of Metrodome's future strategy of becoming a diversified media
business, and furthermore will strengthen and enhance future earnings for the
Company."
For further enquiries:
+----------------------------------------------------+--------------+
| Metrodome Group plc | |
+----------------------------------------------------+--------------+
| Mark Webster / Steve Winetroube | Tel: 020 |
| | 7766 8600 |
+----------------------------------------------------+--------------+
| Charles Stanley Securities | |
| (Nominated Adviser & Broker) | |
+----------------------------------------------------+--------------+
| Dugald J. Carlean / Carl Holmes | Tel: 020 |
| | 7149 6000 |
+----------------------------------------------------+--------------+
| Tavistock Communications | |
+----------------------------------------------------+--------------+
| John West / Lydia Eades | Tel: 020 |
| | 7920 3150 |
+----------------------------------------------------+--------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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