CTEA.L Regulatory News (CTEA)

17 Feb 2005 13:12

Milestone Group PLC17 February 2005 For Immediate Release 17 February 2005 MILESTONE GROUP PLC ("Milestone" or "the Company") Placing of 5.5 million ordinary shares for £1.1 million Milestone Group PLC (AIM:MSG), announces that it is placing 5,500,000 newordinary shares of 10p pence each in the Company (representing in aggregateapproximately 19.92 per cent of the enlarged share capital of the Company) at aprice of 20 pence each. Application is being made to the London Stock Exchange plc for admission of thenew ordinary shares to trading on AIM. Following the placing, the enlarged sharecapital of the Company will comprise 27,605,095 ordinary shares. The 5,500,000 new ordinary shares are being placed for a total of £1.1 million(before expenses) with clients of Arden Partners Limited. Current trading In the announcement of its final results for the year ended 31st December 2004,Andy Craig, the Company's Chief Executive stated: "Through increased efficiencies and further growth in turnover, the Group ismoving its current trading activities towards a position of positive cash-flowon our existing operations in the current year. Trading in the first quarter ofthe new period gives us the confidence that this will be achieved." Reasons for the Placing and use of proceeds With the existing operations now established, the placing will provide theCompany with additional funds to pursue applications for identified local radiolicences and to expand its local media network. Locally focussed radio stations are a key part of the Group's cross-mediastrategy and the Board sees exciting opportunities to add to the Group'sportfolio in broadcasting and publishing, through new licence applications inthe coming year. The Group has a policy of submitting well researched, targetedapplications for new radio licences and for setting up new local newspapers andmagazines to complement its existing interests Placing Agreement The Company has today entered into a placing agreement with Arden under theterms of which Arden has agreed, as agent for the Company, to use its reasonableendeavours to procure placees for the new shares at the placing price of 20p pernew share. Completion of the Placing is conditional upon resolutions beingpassed at an EGM on 14th March 2005: * pursuant to section 80 (1) of the Companies Act 1985 to allot the new shares and * to disapply statutory pre-emption rights in connection with the placing and admission, which is expected to occur on March 15th 2005 (and in any event,no later than 22nd March 2005). A circular containing the notice of EGM will besent to shareholders shortly. Certain Directors and other Shareholders have indicated that they intend to votein favour of the resolutions in respect of in aggregate 15,228,445 existing Ordinary Sharesrepresenting 69 per cent. of the issued share capital of the Company. Commenting on the placing, Andy Craig said: "This placing is a significantindication of support from our major shareholders and also new investors as wereach an important stage in the development of the Group. Management willcontinue to focus on the costs in the business." For further information please contact: Milestone Group Tel: 01235 547 800Andy Craig , Chief ExecutiveBrian Chester, Finance Director Arden Partners Tel: 020 7398 1600Richard Day Buchanan Communications Tel: 020 7466 5000Bobby Morse / Suzanne Brocks / Elly Williamson This information is provided by RNS The company news service from the London Stock Exchange