19 Nov 2009 07:09
19 November 2009
Brainspark plc
("Brainspark or the "Company")
Proposed investment in Mediapolis Investments SA
The Board of Brainspark (AIM: BSP) is pleased to announce that it has agreed to invest €475,536 (£425,987) in Mediapolis Investments SA ("Mediapolis Investments") to acquire a 10.87 per cent. interest in that company.
Mediapolis Investments controls Mediapolis SpA, which is the owner of a site in northern Italy with plans for the development of a theme park. Brainspark is already a 0.47 per cent. shareholder in Mediapolis SpA. Further information on Mediapolis SpA and the development is given below.
Brainspark has secured the rights to invest 47.6 per cent. of a €1,000,000 (£896,000) capital increase currently being undertaken by Mediapolis Investments, the Luxemburg holding company which controls 69.5 per cent of Mediapolis SpA.
The capital increase is priced at €10 (£8.96) per Mediapolis Investments share (the par value) and values Mediapolis Investments at €3,372,890 (£3,021,221) before the capital increase.
The proposed investment in Mediapolis will be satisfied through Brainspark raising additional funds through a proposed placing of new ordinary shares in the Company. On a fully diluted basis, the investment of €475,536 will result in Brainspark holding a 10.87 per cent. equity interest in Mediapolis Investments.
Alfredo Villa, Non-Executive Director of Brainspark, is also a director and shareholder in Mediapolis Investments.
Mediapolis SpA, (www.gruppomediapolis.com) is an Italian real estate company with planning permission to develop an indoor (25,000 sq metres) and outdoor (148,000 sq metres) theme park with outdoor theatre (15,000 seats), shopping centre (36,000 sq metres), a 4 star hotel (342 rooms with 684 occupants) and a television production centre. The total area for the whole development is 60 hectares (148.2 acres). The site is located on the Milan-Turin-Aosta highway junction, 60 minutes drive from Milan, 50 minutes from Turin and 60 minutes from the Mont Blanc Tunnel, one of the main arteries between France and Northern Italy. Telecom Italia SpA, through Olivetti Multiservices, holds 8.58 per cent of the issued share capital of Mediapolis SpA.
The overall development costs of the site are estimated by the management of Mediapolis SpA at €220,000,000 (£201,653,000) over a period of three years, with the theme park element expected to be operational in under two years. The project financing for the overall development is managed by Unipol Gruppo Finanziario (http://www.unipolgf.it/int/en).
For the year ended 31 December 2008, Mediapolis Investments generated a loss before tax of €0.49m and had net assets of €5.8m.
Brainspark will make further announcements in due course.
Statement re Takeover Code
Brainspark is a public limited company registered in England. However as the Company does not have its central place of management and control in the United Kingdom, Channel Islands and Isle of Man, the City Code on Takeovers and Mergers (the "City Code") is not deemed to apply to the Company and shareholders will not be afforded any protections under the City Code. If circumstances relating to the Company's management and control change, then the Panel on Takeovers and Mergers might in the future be of the view that the Code did apply to the Company and in these circumstances an announcement will be made by the Company.
Prof. Francesco Gardin, Chairman of Brainspark, commented: "This investment is the first of a series of investments that the new Board is considering which have a particular focus in the entertainment and leisure sectors. Our strategy is to focus on companies which will increase shareholder value, while also taking advantage of the synergies between physical and digital entertainment. We expect to update shareholders on further investments in due course."
-ends-
For further information please contact:
| Brainspark plc | +39 335 296 573 |
| Francesco Gardin, Chairman | |
| Allenby Capital Limited | +44(0) 20 3328 5656 |
| Nick Athanas/James Reeve | |
| Leander PR | +44(0) 7795 168 157 |
| Christian Taylor-Wilkinson |