Acquisition of additional interest in JV

RNS Number : 6098R

XLMedia PLC

15 September 2014

 

For immediate release

15 September 2014

XLMedia plc
("XLMedia" or "the Group" or "the Company")

Acquisition of additional interest in Joint Venture

XLMedia (AIM: XLM), a leading provider of digital performance marketing services, is pleased to announce that it has agreed to acquire an additional 21% in the Joint Venture which operates the Group's Finnish websites (the "JV"), for a cash consideration of US$1.49 million. The acquisition will take XLMedia's holding in the JV to 93% (previously 72%).

Finland is one of the Group's primary markets for content and search where it currently provides its services through this exclusive contractual joint venture. XLMedia is already responsible for the management of the JV and this acquisition will increase the Group's earnings available for distribution to shareholder as dividends in accordance with the Company's stated dividend policy to pay out at least 50% of retained earnings in any financial year. For the 12 months ended 30 June 2014, the JV recorded operating income of US$9.2 million.

The consideration will be payable in cash, with an initial amount of US$0.49 million payable on closing and the remainder due no later than 25 December 2014. Closing is expected on 30 September 2014.    

For further information, contact:

XLMedia plc Ory Weihs www.xlmedia.com	Tel: [phone]
Buchanan Jeremy Garcia / Sophie McNulty/ Clare Akhurst www.buchanan.uk.com	Tel: [phone]
Cenkos Securities plc Ivonne Cantu / Callum Davidson	Tel: [phone]

 

 

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