This is one to Watch1 Dec 2006 10:01
Thursday, 30th November 2006 08:19
First Artist in 15.5 mln stg takeover of Dewynters UPDATE
LONDON (AFX) - First Artist, the UK entertainment and sports management agency, said it agreed to buy theatre marketing business Dewynters for up to 15.5 mln stg.
The owners of Dewytners, an ad agency specialising in West End productions, will receive 9 mln stg and 100,000 First Artist shares upfront. Three further payments capped at 1.5 mln stg are dependent on future profits at Dewytners.
'Dewynters is an icon in the entertainment and theatre industry representing many of the current hit West End musicals and plays,' said First Artist chief executive Jon Smith.
The deal, classified as a reverse takeover under Stock Exchange rules, will require First Artist to increase its banking facility and place some 1 mln stg of new shares.
In a related move, First Artist said it would consolidate its shares by issuing one new share for each 10 shares currently in issue, while instigating a capital reduction to help pay dividends out of future profits.
First Artist also announced a strong set of preliminary results, reflecting three recent takeovers. For the 10 months to the end of August, pretax profits rose 57 pct to 1.267 mln stg compared to last year, as turnover jumped 62 pct to 9.508 mln stg, it said.
simon.duke@afxnews.com
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