18 Nov 2011 07:00
18 November 2011
Brainspark plc
("Brainspark" or "the Company")
Indirect Increase in Stake in Ondaland Waterpark
Sale of Cogeme and Settlement of AC Ancona
Brainspark plc (AIM: BSP), a fast growing international investment company, is pleased to announce that, through its majority owned subsidiary, Mediapolis spa, it has agreed to swap its 20 per cent. holding in Ondaland (the largest waterpark in Italy), in addition to shares in Michelangelo 2 Real Estate Fund ("Michelangelo 2 Shares") for a 40 per cent. stake in Sipiem spa ("Sipiem"), a construction and leisure company based in Biella, Italy, which currently owns an additional 70 per cent. of Ondaland. Following this transaction Brainspark, through its subsidiary Mediapolis, will own 40% of Sipiem which, in turn, will own 90 per cent. of Ondaland, including additional real estate assets and a medium size construction company. At the end of 2010, Sipiem had net assets of EUR 18 million and generated a net profit of EUR 1.9 million in 2010.
The transaction was carried out through an increase in the share capital of Sipiem. Brainspark will subscribe to the Sipiem's capital increase via Mediapolis, through its 20 per cent. holding in Ondaland and a further EUR 1.9 million to be satisfied in Michelangelo 2 Shares at their current Net Asset Value.
Following this transaction, Brainspark, which owns 69.12 per cent. of Mediapolis, will also increase its credit towards Mediapolis which, if converted in Mediapolis shares, would result in Brainspark increasing its holding in Mediapolis to a percentage to be determined on the basis of the participation of other Mediapolis minority shareholders to such a capital increase.
Sale of Cogeme SET SpA ("Cogeme")
Brainspark has concluded the sale of its stake in Cogeme as it no longer considers this investment to be aligned with its strategy to operate within the Leisure and Real Estate sectors. This sale was carried out at the closing price for the Cogeme shares at 31 December 2010, of EUR 0.37 per share which represent a 81 per cent. premium to their current market price. This sale has however resulted in a loss of EUR 1.89 million which will be shown in the Company's 2010 financial results.
Settlement with AC Ancona
Brainspark has settled with Investors Unlimited Srl ("Investors Unlimited"), for its 36.6 per cent. investment in Italian football club, AC Ancona, following legal action by the Company. Investors Unlimited will pay a minimum of EUR 100,000 to Brainspark and will cover all the associated costs from the legal suit against the Federazione Italiana Gioco Calcio and the various banks involved in Ancona's withdrawal from the Italian 2010-2011 Serie B football league. The eventual cash positive result of this legal action will be shared equally between Brainspark and Investors Unlimited. In case of a readmission of Ancona to Serie B league, Brainspark will receive an additional EUR 800,000 from Investors Unlimited, or a 30 per cent. rights in the football club.
Alfredo Villa, CEO and Chairman of Brainspark, commented, "The Company is entering a phase of consolidation of its assets in the Leisure and Real Estate sectors which will see us hold majority stakes in each of our investments. This will allow us to direct more control over the business activities and future strategies of these companies."
-ends-
For further information please contact:
Brainspark plc +39 02 525 051
Alfredo Villa, Chairman and CEO
Arbuthnot Securities +44(0) 20 7012 2000
Antonio Bossi
Leander PR +44(0) 7795 168 157
Christian Taylor-Wilkinson
About Brainspark Plc
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, real estate and entertainment 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.