5th Sep 2007 08:00
Sport Media Group PLC05 September 2007 Sport Media Group plc ("Sport Media", "SPMG" , "the Group" or "the Company") First Day of Dealings Sport Media Group plc, a UK national tabloid newspaper house with titlesincluding the Daily Sport and Sunday Sport, is pleased to announce that itsshares have been admitted to trading on AIM today. The shares will be traded asfollows: ISIN Description TIDM---- ------------- ----GB00B11FCP94 Ordinary 0.25p Shares, ranking pari SPMG.L passu with existing Ordinary Shares; GB00B253T973 Ordinary 0.25p Shares RFD SPMR.L The conversion of the Ordinary 0.25p Shares RFD is expected following the RecordDate of the existing line. The admission follows the reverse takeover of Sport Newspapers Limited ("SportNewspapers"), as announced on 25 June 2007 and following the approval of theshareholders of Interactive World plc ("Interactive") at its EGM held on 3September 2007. Background and key information * Sport Newspapers, established in 1986, has grown to become a recognised UK branded tabloid newspaper. * Current circulation in the UK for the Daily Sport represents 1.6 per cent. of the 'red top' newspaper market, with the Sports Titles being sold to approximately 36,000 outlets by a network of well known outlets and wholesalers. * Sport Newspapers obtains both photographic and editorial content from a variety of sources, including news and picture feeds from the Press Association and freelance news and picture agencies across the world. In addition content is generated in-house by Sport Newspapers' own news and sports journalists. * Sport Newspapers has been a content supplier and a means of advertising for Interactive World since 2000. The relationship is based on a revenue share basis and the two companies have worked closely to initiate new and up to date content and routes to consumers. * The resulting Group combines an established newspaper brand with recognised experience in the delivery of digital content through various channels. * The Directors believe that an AIM listing of Sport Media Group plc, as enlarged by the Acquisition, will provide the Enlarged Group with increased access to capital and the ability to use shares as consideration to allow it to pursue its consolidation strategy. Daniel Stewart & Company plc is acting as nominated adviser and broker to theGroup. Commenting on Group's admission to trading on AIM, Andrew Fletcher, ChiefFinancial Officer, said: "This acquisition of a national newspaper brand with a strong loyal readershipon such a competitive multiple has created a Group with exciting growthprospects and an attractive yield for our shareholders. Individually bothcompanies have proven to be highly cash generative and the combined Group willlook to build upon this and continue Interactive World's progressive dividendpolicy. "We are confident that Sport Media Group will provide good returns forshareholders. A small increase in the circulation of the Daily Sport and SundaySport will deliver a significant increase in Group profits". ACQUISITION, VENDOR PLACING AND ADMISSION STATISTICS Placing price 75 penceNumber of Placing shares to be issued 58,266,667Number of Vendor Placing Shares to be sold pursuant to the Vendor 19,273,148PlacingPercentage of Enlarged Share Capital being issued by the Company 60.16%under the PlacingGross proceeds of the Placing receivable by the Company £43,700,000Estimated net proceeds from the Placing to be received by the £40,000,000CompanyNumber of Ordinary Shares in issue immediately following Admission 38,584,884Number of 'A' or 'RFD' Ordinary Shares in issue immediately 58,266,667following AdmissionMarket capitalisation of the Company on Admission at the Placing £72,638,663Price (including both classes of Shares) Key Strengths The Directors are confident about the future prospects of integrating the twobusinesses following the Acquisition and believe that the Company has thefollowing key strengths: An established branded media offering; * cross selling potential; * potential upside from a wider distribution of the Sports Newspapers' title; and * a highly experienced management team BOARD APPOINTMENT The Board is pleased to announce the appointment of Andrew Fickling (aged 35) asExecutive Director of the Group. Sponsored throughout his university degree by Sport Newspapers, Andrew joinedSport Newspapers in 1991 as a Manager within the IT department, where he led theimplementation of modernising the IT infrastructure and systems. He progressedto become Head of IT in 2000, Technical Director in 2002 and Executive Directordesignate in 2004. He played a key role in the development of variousdepartments within Sport Newspapers' Manchester Offices. Andrew has held no other Board appointments and there is nothing further todisclose pursuant to AIM Rule 17, Schedule 2g. Holdings in Company Following the Acquisition, Admission and Vendor Placing, Mr David Sullivan nolonger maintains a notifiable interest in the share capital of the Company. For further information, please contact: Sport Media Group Plc Tel: + 44 (0) 20 8507 6969Andrew Fletcher, Chief Financial Officer www.interactiveworld.com Daniel Stewart & Company plc Tel: +44 (0) 20 7776 6550Alastair Cade/Katie Shelton www.danielstewart.co.uk Abchurch Communications Tel: +44 (0) 20 7398 7700Chris Lane/Gareth Mead www.abchurch-group.com Notes to Editors: Formed by a reverse takeover of Sport Newspapers Limited by Interactive Worldplc, SPMG combines an established national newspaper brand with recognisedexperience in the delivery of content through digital channels, including bothbroadband and mobile. Through integrating traditional print with new media digital content, SPMG'sstrategy is to expand its target audiences beyond its current loyal readershipand users. The Group will also build upon the brand to attract a more diverseaudience thereby attracting a broader base of significant advertisers. Theintegration also provides significant cross selling and marketing opportunities. The enlarged Group is already highly cash generative with a sustainable andprogressive dividend policy. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SPMG.L