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2 Sep 2008 07:00
2 September 2008 Talent Group plc ("Talent" or the "Company") Acquisition of KMB Productions
The Company announces that it has entered into a sale and purchase agreement to acquire the entire issued share capital of KMB Productions Limited ("KMB"), a television production company, for a cash consideration of ‚£1,100 (the "Transaction"). In addition, the Company has agreed to assume loans amounting to ‚£82,000 which have been advanced to KMB by one of its major shareholders (the "Loan"). Conditional upon completion of the Transaction, the Loan will be assigned and transferred to the Company, following which, it will be satisfied by the payment of ‚£36,000 in cash and by the issue of 460,000 new Talent shares ("the Loan Satisfaction Shares").
KMB was established in 2005 and is based in Hampshire. It has produced a variety of programmes, including Vicar's Wives for ITV1, The Flying Winemakers for UKTV and By Royal Appointment for ITV London and Meridian. It also makes a number of promotional films for corporate clients.
KMB's unaudited accounts for the period ended 28 February 2008 show turnover of ‚£233,161 and a loss before taxation of ‚£21,787. As at 28 February 2008 KMB's net assets were ‚£4,325. This excludes any value attributable to its library of programmes.
The Transaction will provide the Company with an established regional production business. This will enable Talent to compete for the increasing number of commissions which the major broadcasters need to source from companies based outside London in order to meet their own regional quotas.
Following the Transaction, KMB will change its name to Talent South Limited and under the guidance of existing Managing Director, former ITV Meridian series producer Kate Beal, will continue to specialise in factual, lifestyle and daytime programming.
The Company plans to grow the KMB business by investing in its infrastructure and, in particular, its key personnel. This investment is expected to be in the form of direct cash investment and through the provision of the Company's executive management time. To this end, Tony Humphreys (managing director of the Company) and Jonathan Glazier (director of entertainment of Talent Television Limited) will be appointed to the board of KMB.
The Company continues to seek suitable acquisition targets in order to expand the business and to diversify its production capabilities.
Application has been made for the Loan Satisfaction Shares to be admitted to trading on AIM. It is expected that admission will become effective and that trading in these shares will commence on 8 September 2008.
ENQUIRIES:Talent Group plc Tony Humphreys Tel: 020 7421 7800 John East & Partners Limited John East / Simon Clements Tel: 020 7628 2200
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