7 Nov 2012 08:24
7 November 2012
Brainspark Plc
("Brainspark" or "the Company")
MEDIAPOLIS UPDATE
Brainspark, the AIM quoted international investment company (AIM: BSP), is pleased to advise shareholders with changes to the board structure and operational progress at its subsidiary Mediapolis SpA. These changes are in line with the Company's strategy to achieve operational control of its main assets; namely, ORH SpA, Sipiem SpA (Ondaland water park), YouCan Group srl (Sosushi restaurant chain) and Mediapolis SpA.
Following the changes to the board of Mediapolis, the new board will consist of Alfredo Villa, as CEO, Cesare Suglia, as CFO and Dominic White, as COO.
The new Board will implement the following measures with immediate effect:
·; Formally divide the land into four different separated areas, designated: Theme Park, Hotel, Commercial Center and Cogeneration Plant.
·; Appoint architect Christian Fenouil to execute all the necessary processes to divide the land. For the recent year end audit, Mr Fenouil prepared an appraisal on the Mediapolis land which valued it at EUR 42 million.
·; Mandate ORH SpA and Sipiem SpA to prepare a viable business plan for the development of the two Hotels which are planned for the site (ORA Hotel to manage) and the Theme Park (Sipiem to build and manage).
·; Appoint London based, global real estate firm, Cushman and Wakefield (www.cushwake.com) to advise the Company in the development of the projects and the future sale of the various designated areas, either as a single entity or separately.
The new board believes that the above strategy will enhance the value of the land and development projects, as it will increase the numbers of potential shareholder partners involved in the development and building phases, divide the mortgage debt between each designated area and, ultimately, increase the number of potential buyers for the land as a whole or as individual areas.
These changes will subsequently allow the Company to best decide upon what constitutes the right offer for the Mediapolis land, having considered all possible outcomes, including the current non-binding offer it received on 11 October.
The new Board is confident that its choice of real estate partner, Cushman and Wakefield, will offer the expertise and know-how to bring a satisfactory conclusion to this exciting project; and more importantly, bring this significant real estate development project to a much wider audience of international property investors.
Alfredo Villa, CEO of Brainspark commented, "In accordance with the above measures we have taken the decision to postpone the current negotiations until the process is complete and, at which time, we believe it will allow us to seek more favourable terms of sale. We will provide shareholders with a statement of progress before the year end."
-ends-
For further information please contact:
Brainspark plc +39 02 525 051
Alfredo Villa, CEO
Westhouse Securities (Nominated Adviser and Broker) +44 (0) 20 7601 6100
Antonio Bossi
Jonathan Haines
Leander (Financial PR) +44 (0) 7795 168 157
Christian Taylor-Wilkinson
About Brainspark
Brainspark plc (AIM: BSP) is an AIM listed investment company pursuing a dynamic strategy to create a comprehensive portfolio of companies primarily encompassing the leisure and real estate sectors mainly in Italy but also other European countries. The Company may be either a passive or active investor and Brainspark's investment rationale ranges from acquiring minority positions with strategic influence through to larger controlling positions. For further information, please visit, www.brainsparkplc.com