Acquisition

19 Jan 2005 12:44

Avanti Screenmedia Group PLC19 January 2005 Avanti Screenmedia Group plc ("Avanti Screenmedia" or "the Company") Completion of the acquisition of Freelance Media Limited Further to the announcement on 23 December 2004, Avanti Screenmedia, the marketleading provider of retail television services to high street retail and the puband bar market clients, is pleased to announce it has escrow completed (withcompletion occuring automatically on admission of the Consideration Shares toAIM) the acquisition of the entire issued share capital of Freelance MediaLimited ("Freelance Media") following the conditions of the acquisition havingnow been met. Freelance Media (which trades as "Screen Network"), has been trading since 2000and provides screenmedia services to shopping centres. It currently hasinstalled at two shopping centres (Victoria Place in London Victoria Station andWhite Rose in Leeds), has a contract to sell advertising on existing screens inthe Trafford Centre Manchester and has signed a further 5 contracts to createscreenmedia networks in shopping centres in London and the North with severalothers at late stage negotiation. It employs a free to air model, signing exclusive agreements with shoppingcentre operators and generating revenue through the sale of advertising. The acquisition, is for a consideration of approximately £1.9 million which willbe satisfied by a cash payment of £541,728 and the issue of 690,441 new ordinaryshares in the Company ("Consideration Shares") at a price of 200p per share. Freelance Media generated a loss before tax of £498,976 on turnover of £59,225for the year ended 31 December 2003 and had net liabilities as at 31 December2003 of £21,546. Commenting on the acquisition, David Williams, Chief Executive of AvantiScreenmedia said "Now that we have completed the acquisition we can begin thejob of aggressively acquiring other contracts. Our financial and tradingcredibility puts us in a strong position to lead the shopping mall market, as wedo in other areas of Out of Home Digital advertising. As a result of theacquisition, several prominent property entrepreneurs, will join our shareregister and we hope to learn a great deal from them." Application for admission to trading on AIM for the Consideration Shares hasbeen made and trading in the Consideration Shares is expected to occur on Monday24 January 2005. The Consideration Shares will, on Admission, rank pari passu inall respects with the existing ordinary shares of the Company. Enquiries: Avanti Screenmedia Group plc www.avanti-screenmedia.com ----------------------------David Williams, Chief Executive 0207 749 1600Gary Truman, Group Financial Director Binns & Co PR 020 7786 9600Peter Binns 07768 392 582Jacqui Graves 0207 153 1486 Seymour Pierce LimitedDru Edmonstone 0207 107 8011Mark Percy 0207 107 8000 This information is provided by RNS The company news service from the London Stock Exchange