Update re growth
January 12 2004 - 5:00AM
UK Regulatory
RNS Number:0990U
Network Limited
12 January 2004
12 January 2004
Network Limited ("Network" or "The Company")
Network maintains growth momentum with A$3.75M of acquisitions
Network Limited and its subsidiaries ("Network") are pleased to announce that it
has finalised settlement on the 2003 acquisition of South Australian-based
outdoor advertising business Russell Ads. Network has also entered into a
Memorandum of Understanding to acquire the NSW-based outdoor advertising
business No.1 Media Group. The acquisitions, to be funded by a mixture of cash
and scrip, are both expected to be immediately EPS positive from their
acquisition date effective 1 January 2004.
The total cost of the acquisitions was A$3.75 million (#1.57 million), payable
in the form of A$2.7 million (#1.13 million) cash and A$1.05 million (#440,000)
of Network ordinary shares valued at A$0.35 (15 pence) each. Under the terms of
the previously announced Russell Ads acquisition, Network paid a deposit of
A$2.0 million (#840,000) in 2003, with the balance due on final settlement. In
full consideration of the No.1 Media Group acquisition, 3,000,000 ordinary
Network shares are to be issued to vendors Mr & Mrs Bill Cole. The placement, to
be conducted at a 13% premium to Network's ASX Friday closing price, is subject
to shareholder approval.
Network CEO, Mr Brendon Cook said "The Russell Ads and No.1 Media Group
businesses represent outstanding growth opportunities for Network in 2004 and
beyond. These are high quality portfolios of outdoor premium advertising sites
that are complimentary to our existing business units in South Australia and
nationally."
Mr Cook went on to say, "The acquisition of Russell Ads and No.1 Media Group are
expected to contribute significantly to Network's NPAT earnings in 2004 and
beyond."
For more information:
Brendon Cook, Executive Director & CEO
+61 2 9954 5566
brendon.cook@nwk.com.au
About Network Limited: Listed on the ASX and AIM (Code: NWK), Network is an
Australian based and operated outdoor media company. Network is well positioned
to leverage its current position as Australia's largest outdoor media brokerage
business. The company has demonstrated capabilities including over 14 years of
strong growth, an extensive national network of site owners, a successful
management team, and the ability to grow through strategic acquisitions. Network
is well placed to consolidate its position and exploit growth opportunities in
the Australian media industry.
This information is provided by RNS
The company news service from the London Stock Exchange
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