26th Aug 2005 07:00
MediaZest plc26 August 2005 MediaZest Plc (the "Company") Acquisition of Touch Vision Limited ("Touch Vision"), placing and notice of Extraordinary General Meeting Introduction The Board of the Company announces that it has reached agreement on the proposedacquisition of Touch Vision, a wholly owned subsidiary of Touch Group Plc. Furthermore, the Company announces that it has, conditional on the acquisition,placed 4,705,883 shares at 42.5p, raising £2,000,000 before expenses. The Company has convened an EGM for 19 September 2005. A circular has been posted to shareholders outlining details of the above. Terms of the acquisition The Company has agreed to acquire the entire issued share capital of TouchVision for a consideration of up to £3,000,000 comprising of £700,000 of cashand £1,875,000 of shares in MediaZest on completion and an additional £375,000of deferred consideration conditional on the pre tax profits of Touch Vision forthe 12-month period ending 31 December 2005. The agreement is conditional on the approval of the Company's shareholders. Placing The Company proposes to issue 4,705,883 placing shares at 42.5 pence, which willraise in aggregate £2,000,000 for the Company (before expenses). The netproceeds of the placing will be used to satisfy part of the consideration forthe acquisition of Touch and to provide additional working capital for theenlarged group. Extraordinary General Meeting A notice has been sent to shareholders of the Company convening an ExtraordinaryGeneral Meeting to be held on 19 September 2005, at which amongst other thingsshareholders will be asked to approve the acquisition. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Mediazest