2 Jul 2007 07:00
YooMedia PLC ("YooMedia" or "the Company") Option to acquire gaming subsidiary
YooMedia , the AIM-traded interactive media and games group, announces that it has today entered into an option agreement with a Spanish based investment company, Kasei 2000, to dispose of YooMedia's subsidiary; The Gaming Channel Ltd ("Gaming Channel"), for a total consideration of ‚£5.25m. The Gaming Channel holds the UK fixed odds betting licence under which YooMedia operates its gambling activities.
The option agreement entered into between the Company and, Kasei 2000 provides the right to Kasei 2000 to purchase from YooMedia the Gaming Channel for a total consideration of ‚£5.25m, payable in cash by 31 October 2007. Of the total consideration of ‚£5.25m, ‚£0.8m is payable in cash by Kasei 2000 to YooMedia in the next two months for entering into the option agreement. The option agreement includes a provision for YooMedia to redeem the option agreement if YooMedia receives a cash offer from a third party to acquire the Gaming Channel for a sum in excess of ‚£4.45m.
The Gaming Channel made a gross profit contribution of ‚£2.3m for the year ended 31 December 2006.
The option agreement provides that, on the acquisition of the Gaming Channel, YooMedia will continue to provide ongoing service and technical support to the Gaming Channel for five years
If the option agreement is exercised by Kasei 2000, the disposal of the Gaming Channel Ltd may require shareholder approval at a general meeting under AIM rule 15 of the AIM Rules for Companies.
Michael Sinclair, Executive Chairman, YooMedia PLC, Commented:
"YooMedia is in discussions with Kasei 2000 to explore opportunities for its interactive services in Spain and other Hispanic markets and this option agreement underlines Kasei 2000's interest in the gaming sector in particular.
"We are delighted at the formation of this long term connection with a well connected business in the Spanish market where we see exciting potential for our unique range of interactive products and service."
2 July 2007Enquiries:YooMedia PLC +44 (0) 207 462 0870 Neil MacDonald, Managing Director Nexus Financial Ltd 020 7451 7068 Nicholas Nelson/Kathy Boate Nicholas.nelson@nexusgroup.co.uk Seymour Pierce Limited +44 (0) 207 107 8000 Mark Percy
YOOMEDIA PLC