Acquisition of Target

 

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 
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