Update re Cream Group Transaction (0995U)
December 16 2011 - 2:00AM
UK Regulatory
TIDMIMAC
RNS Number : 0995U
Ingenious Media Active Capital Ltd
16 December 2011
16 December 2011
Cream Group to take full ownership of Creamfields UK
Festival
Ingenious Media Active Capital Limited ("IMAC" or the "Company")
today announces that its board has approved the purchase by C.I.
(Events) Ltd (a wholly owned subsidiary of Cream Holdings Limited
("Cream")), of the ownership position of Ingenious Live VCT 1 plc
and Ingenious Live VCT 2 plc (collectively "the Ingenious Live
VCTs") and The Young Vic Company in the Sunday ("Day 2") of the
Creamfields UK festival ("the Transaction").
On completion of the Transaction, which is subject to the
completion and execution of legal documents which is expected to
take place in January 2012, Cream will operate and own all of the
Creamfields UK festival. Cream is an investee company of IMAC
through IMAC's limited partnership holding (90 per cent) in
Ingenious Ventures Limited Partnership ("IVLP"). IVLP has a 46.9
per cent interest in Cream.
The Creamfields UK festival has performed strongly over the last
few years, and completion of the Transaction will allow Cream to
participate fully in the future growth of this event.
IMAC's manager is Ingenious Ventures, a trading division of
Ingenious Asset Management Limited, and part of the Ingenious
Group, one of the UK's leading media investment and advisory
businesses. Ingenious Ventures is also the manager of the Ingenious
Live VCTs. The directors of IMAC consider the Transaction to be a
Related Party Transaction under the AIM rules.
The Transaction will involve the purchase by C.I. (Events) Ltd
of both the Ingenious Live VCTs' aggregate 49.9 per cent holding
and The Young Vic Company's 0.02 per cent holding in CFDT Ltd. CFDT
Ltd was funded by C.I. (Events) Ltd, The Young Vic Company and the
Ingenious Live VCTs to run Day 2 of the Creamfields UK festival in
July 2008.
Upon completion of the Transaction, C.I. (Events) Ltd, will hold
a 100 per cent interest in CFDT Ltd. The consideration for the
Transaction, to be paid in cash, is GBP1.08m. In addition, the loan
notes held by the Ingenious Live VCTs in CFDT Ltd will be repaid in
accordance with the original Loan Note Agreements for an aggregate
amount equal to GBP1.7m. In the event of a sale of Cream during a
two year period following the completion of the Transaction,
further contingent deferred consideration may also be payable to
the Ingenious Live VCTs dependant on the sale value of Cream.
CFDT Ltd is entitled to 40 per cent of the proceeds from Day 2
of Creamfields UK. CFDT Ltd recorded turnover of GBP1.93m and gross
profit of GBP232,030 in the year ended 31 May 2011. As at 31 May
2011, CFDT had current net assets of GBP1.7m. The Creamfields UK
festival in August 2011 again sold out in advance of the event,
despite increasing capacity to 50,000 per day, up from 45,000 per
day the previous year.
The board of IMAC consider, having consulted with its nominated
adviser, that the terms of the Transaction are fair and reasonable
in so far as the shareholders are concerned. Patrick McKenna (who
is a shareholder and on the board of the Ingenious Live VCTs and a
director and chairman of The Young Vic Company); Mike Luckwell (who
is a shareholder of the Live VCTs); and Neil Blackley (who is a
shareholder of the Live VCTs) abstained from voting at the meeting
of the board of the Company at which the Transaction was
considered.
Enquiries:
IMAC Patrick McKenna/ Patrick Bradley - 020 7319 4000
Canaccord Genuity Limited
Bhavesh Patel - 020 7050 6500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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