24 Sep 2010 17:03
24 September 2010
Brainspark plc
("Brainspark" or the "Company")
Update on Investments
On 18 May 2010 Brainspark announced that it had invested £2.1m in Cogeme SET S.p.A ("Cogeme") to acquire a 6.12 per cent. stake in the issued share capital of Cogeme. Brainspark has subsequently acquired a further 10.08 per cent. stake in Cogeme for c.EUR3.29 million (c.£2.81). Subsequently Brainspark sold a 8.47 per cent. stake in Cogeme for c.EUR2.77 million (c.£2.36 million).
At the date of this announcement Brainspark has an interest in 4,492,857 shares in Cogeme equivalent to 7.27% of Cogeme's issued share capital. Cogeme is a leading Italian Tier 2 manufacturer of high precision components for the automotive sector. For the year ended 31 December 2009, Cogeme generated revenue of EUR61.8 million (£52.8 million) and profit before tax of EUR3.0 million (£2.6 million). Audited net assets as at 31 December 2009 were EUR63.0 million (£53.9 million). As announced on 18 May 2010, Brainspark's investment in Cogeme is a short-term position taken by Brainspark to optimise its cash utilisation.
Brainspark also announces that it has entered into an unsecured short-term loan agreement, expiring on 28 February 2011, with T.R.E. srl ("T.R.E."), the largest shareholder in Associazione Calcio Ancona S.p.A ("Ancona"), the Italian football club in which the Company has a 44.8% equity interest. Pursuant to this unsecured loan agreement, Brainspark has lent 4,100,000 shares in Cogeme to T.R.E. The loan carries an annual yield of 1.2% payable to Brainspark in cash. The loan allowed T.R.E. to provide Ancona with the required collateral for a bank guarantee which was required to be produced to the Italian Football Association (the "F.I.G.C."). This bank guarantee was required as part of the conditions for Ancona to receive a grant from the F.I.G.C. and was part of a number of actions implemented by Ancona to secure the required funding for the football club.
It is with regret however that Brainspark announces that Ancona has not been admitted to Serie B for the 2010-2011 season. Ancona has instead been admitted to a lower division in Italy for the 2010-2011 season. Brainspark is currently in discussions with Investor Unlimited S.r.l. ("Investor Unlimited"), the entity from which Brainspark acquired a 36.6% stake in Ancona in March 2010, with a view to unwinding the original investment made by Brainspark in Ancona. The outcome of such negotiations will be announced as soon as practicable.
Brainspark currently has outstanding commitments to certain vendors of previously announced investments which the Company has made in Bibop S.p.A and Mediapolis Investments S.A. These total c.EUR2.39 million (c.£2.04 million) Brainspark has raised £8,955,000 via its 7% up to £10m Convertible Bond since April 2010. The Directors are confident that further sums can be raised to meet these commitments.
For further information contact:
| Brainspark plc | +39 335 296 573 |
| Francesco Gardin, Chairman |
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| Arbuthnot Securities | +44(0) 20 7012 2000 |
| Antonio Bossi |
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| Ed Groome |
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| Leander PR | +44(0) 7795 168 157 |
| Christian Taylor-Wilkinson |
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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 interactive media, leisure, entertainment and financial services sectors mainly in Italy but also other European countries. Its core investment is B'Parks & Leisure, the owner of a site in northern Italy with plans for the development of a large theme park. 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.