15 Jul 2008 07:00
UBC Media Group plc
("UBC" or the "Company")
Update on Sale of UBC's Commercial Division
Further to the Company's announcement on 8 May 2008, UBC is progressing negotiations with Global Traffic Network, Inc. ("GTN") to agree the terms of and exchange a Sale and Purchase Agreement for the sale of the Commercial Division.
It is now intended that the full consideration will be settled in cash, with no share consideration element. It is intended that an initial £11 million will be paid on completion of the transaction, with provisions for an earn-out which has the potential to deliver additional payments of up to £5.5 million depending upon the Commercial Division achieving certain turnover targets in the 12 months following its sale.
The revised terms of the sale of UBC's Commercial Division are subject to completion by GTN of due diligence and is now expected to close, subject amongst other things to approval by UBC's shareholders, on or before the 20th October 2008.
Simon Cole, Chief Executive of UBC commented:
"The Board of UBC continues to believe that, despite testing conditions in the advertising marketplace, the Commercial Division is a strong business with good prospects for the future. The Board believes that these terms fully reflect the potential of the Commercial Division".
Ends
Enquiries
Simon Cole, CEO, UBC Media Group plc. Tel: 020 7453 1600
Mark Percy or Sarah Jacobs, Seymour Pierce Limited. Tel: 020 7107 8000
Notes to Editors
About UBC Media Group
UBC is quoted on the London Stock Exchange's AIM market. UBC is the market leader in the supply of audio content to the radio industry in the UK. In addition to the entertainment, traffic & travel and national news services provided to commercial radio, the Group is the largest independent producer of radio programming for the BBC. It is part of the MXR Regional Multiplex and the 4Digital National multiplex consortium.
www.ubcmedia.com