AVS.L Regulatory News (AVS)

6 Sep 2006 10:38

Medal Entertainment & Media PLC06 September 2006 6 September 2006 Medal Entertainment & Media plc ("MEM" or "the Company") Sale of Fountain Television Limited The directors of MEM ("the Directors") are pleased to announce that the Companyhas completed the sale of Fountain Television Limited ("Fountain"), owner andoperator of the 13,000 sq. ft television studios in Wembley, to InvestinMediaInvestments Limited, a wholly-owned subsidiary of InvestinMedia plc, for a totalpayment of £6.8 million paid in cash at completion. The principal activity of Fountain is the ownership and operation of theFountain Television Studios in Wembley. In the year ended 31 March 2006,Fountain achieved a turnover of approximately £3.2 million and a loss onordinary activities before tax of approximately £0.4 million. At 31 March 2006,the net assets of Fountain stood at approximately £1.7 million. The net sale proceeds will be applied in the short term to reduce borrowingssubstantially, including the repayment of a £2.9 million mortgage held by theCompany and secured on the assets of Fountain, and, in the medium term, toprovide a platform for the further development of the Group both organically andby acquisition. This disposal represents a Substantial Transaction under rule 12 of the AIMRules and also a Related Party Transaction under rule 13 of the AIM Rules byvirtue of the fact that InvestinMedia plc owns 20.74 per cent. of MEM's sharesand Richard Murray, a non-executive director of MEM, is also chairman ofInvestinMedia plc. In accordance with rule 13 of the AIM Rules, the directors of MEM, with theexception of Richard Murray who is a related party, consider, having consultedwith MEM's nominated adviser, Nabarro Wells & Co. Limited, that the terms of thetransaction are fair and reasonable so far as MEM's shareholders are concerned. Enquiries: Steve Ayres, Chief Executive, MEM plc Tel: 020 7851 0550Tim Allan/Diane Barnes, Portland PR Tel: 020 7404 5344Richard Swindells, Nabarro Wells & Co. Limited Tel: 020 7710 7400 This information is provided by RNS The company news service from the London Stock Exchange