Acquisition is going ahead! 17 Mar 2014 09:02
Posted as an OMIP RNS for some reason but here it is:
Update on Proposed Acquisition and Audioboo
Mon, 17th Mar 2014 07:00
RNS Number : 4299C
UBC Media Group PLC
17 March 2014
UBC Media Group plc
("UBC" or "the Company")
Update on Proposed Acquisition and Audioboo
UBC Media Group (AIM: UBC), the multimedia content and services company today provides an update on the proposed acquisition of 7digital Group, Inc. ("7digital") and on its investment in Audioboo.
Proposed Acquisition of 7digital
The Company announced on 25 November 2013 that it had entered into a Letter of Intent with privately owned 7digital with a view to creating a new publicly listed company combining the broadcast assets of UBC, including its investment in Audioboo, with those of 7digital. 7digital is a leading supplier of digital music services with a library of 25 million tracks. Both UBC and 7digital believe that the growth of digital music services is increasingly linked to the growth of listening to radio online and on mobile, creating a need for hybrid services which incorporate both radio listening, curated playlists and on demand music.
UBC is pleased to announce that it has now signed Heads of Terms with 7digital, outlining the detailed material terms of the potential acquisition of 7digital by UBC ("the Acquisition") and has agreed a period of exclusivity up to 4 April. The Acquisition, if consummated, would constitute a reverse takeover under Rule 14 of the AIM Rules for Companies and will therefore be conditional, inter alia, upon the publication of an admission document by the Company and the approval of UBC's shareholders at a general meeting. UBC expects to publish an admission document by the end of May 2014 and further updates will be made as and when required. In accordance with the rules of AIM, UBC's shares will remain suspended until the admission document is published or the Company confirms that the Acquisition is no longer taking place.
Update on Audioboo Investment
As announced previously, Audioboo, the fast growing audio social network, has been seeking further investment in order to support its development and growth.
To that end, UBC is pleased to announce that it has signed non-binding Heads of Terms with One Delta plc, a cash shell quoted on AIM, to acquire the entire issued and to be issued share capital of Audioboo in a potential all share transaction which would leave UBC with a significant stake in the enlarged group. One Delta has announced today that it has raised £3,485,000 through the issue of new ordinary shares and confirmed the transaction. UBC currently holds 39% of the ordinary share capital of Audioboo. If the transaction completes as currently envisaged, UBC would hold just under 20% of One Delta plc.