Character Regulatory News (CCT)

18 Jul 2006 10:05

Character Group PLC18 July 2006 Issued by Citigate Dewe Rogerson, BirminghamDate: Tuesday, 18 July 2006 IMMEDIATE RELEASE The Character Group plc ("the Company" or "the Group") Designers, developers and distributors of toys, games and gifts 3i acquire 24% The Board of the Character Group announces that the Company has today receivednotice that 3i plc ("3i") has acquired 11,525,898 ordinary shares, representingapproximately 24.1% of the current issued share capital in the Company(excluding the 1,000,000 ordinary shares in the Company held in treasury). As a result of this significant, positive change in shareholding, it is theDirectors intention to invite a senior executive of 3i to join the Board as anon-executive director. Further details will be released as appropriate. The shareholding was acquired by 3i from Giochi Preziosi S.p.A. Consequently,following the disposal, Giochi Preziosi no longer has an interest in shares inthe Company. Richard King, Executive Chairman, the Character Group said: "The Directors welcome 3i as investors in the Group. Clearly, their decision toacquire a stake in our business underpins their confidence in our business modelgoing forward." "We also wish to thank Giochi Preziosi, and Enrico Preziosi in particular, fortheir support over the years and wish the team and the business well for thefuture and we look forward to continuing to develop our trading relationship" "As a Group, trading has continued to be strong as we build up towards the endof our financial year in August as well as for the autumn selling season, whichincludes Christmas and is very important for the next financial year." "We will remain focused on improving our operational efficiencies but, moreimportantly, on our strategy, which is to exploit our in-house capabilities indeveloping both our own and licensed properties thereby further improving ourproduct portfolio which ultimately will, we believe, be reflected in increasedearnings and shareholder value." Alan Mackay, 3i Director commented: "This is a powerful combination of an ambitious management team, experiencedBoard and a solid strategy for success. 3i looks forward to a close relationshipas an actively engaged shareholder, helping the Company achieve its vision andreaching the full potential of the business". continued... -2- The Group has, over the last few weeks, also purchased in the market throughCharles Stanley Securities 5,065,000 ordinary shares in the Company,representing approximately 10.6% of the current issued share capital of theCompany (excluding the 1,000,000 ordinary shares in the Company held intreasury). Following these transactions, the Company has 47,824,909 ordinaryshares in issue (excluding the said shares held in treasury). As part of the Group's stated objective to enhance shareholder value through therepurchase of its own shares, the Directors will continue to monitor theposition and will, if appropriate, make further purchases of the Company's own shares. Enquiries: The Character Group plc Charles Stanley Securities Citigate Dewe Rogerson LtdRichard King, Executive Chairman Rick Thompson / Philip Davies Fiona TooleyKiran Shah, Group Finance DirectorTel: +44 (0) 20 8949 5898 Tel: +44 (0) 20 7149 6000 Tel: +44 (0) 121 455 8370Mobile: +44 (0) 7836 250150 (RK) Mobile:+44 (0) 7785 703523 +44 (0) 7956 278522 (KS) 3iHelen Adams 3iTel: +44 (0) 207 975 3465 Notes to Editors: About The Character Group plcThe Character Group plc designs, develops and distributes toys, games andgiftware, principally to the UK although it has an ever increasing exposure tointernational markets. Revenues are generated from a mix of product with over 50% designed anddeveloped in-house either under the Group's own brand or under licence with thebalance being derived from third party distribution. Notable product lines areDr Who, Scooby Doo, Biker Mice from Mars, Peppa Pig, GR8 Gear, Robosapien,Roboraptor and Robopet. For a more comprehensive view of the product portfolio,please refer to www.characteronline.com. During the first six months of the current financial year (ending 31 August2006), The Character Group underwent a major reorganisation with the disposal ofits Digital Business in February 2006. The structure is now designed to maximisethe strength of, and focus on, the core business of Toys, Games and Gifts. www.thecharacter.comCCT.LSector: Media, AIM About 3i3i is a world leader in private equity and venture capital. 3i focuses onbuyouts, growth capital and venture capital and invest across Europe, in theUnited States and Asia. 3i's competitive advantage comes from its internationalnetwork and the strength and breadth of its relationships in business. Theseunderpin the value that 3i deliver to its portfolio and to its shareholders. This information is provided by RNS The company news service from the London Stock Exchange