West 175 Media Group Inc
28 April 2000
WEST 175 MEDIA GROUP INC:
ACQUISITION OF OUTSTANDING 40% SHAREHOLDING
IN WEST MEDIA EVENTS
West 175 Media Group Inc. ('West 175' or the 'Company'), the lifestyle media
group listed on AIM, announces that it has purchased the outstanding 40 per
cent of the ordinary equity it does not own in West Media Events, an events
management business previously called Montage Projects Limited ('Montage'), to
be satisfied entirely by the issue of 200,000 new common shares in the
Company. The initial 60% in West Media Events was acquired in March 1999.
Application will be made for the new common shares which rank pari passu in
all respects with the Company's existing common or ordinary shares, to be
admitted to trading on AIM.
Following the latest purchase by West 175, the co-founding Managing Directors
of West Media Events, Mathew Brockman and Steve Waring, will continue to
manage the business day-to-day.
West 175 acquired Montage in March 1999 for £225,000 by way of an initial
consideration satisfied entirely by 300,000 common shares of West 175 and a
further consideration of up to 75,000 common shares payable dependent upon the
achievement of agreed profit targets, to be met by October 1999. The profit
targets of £83,378 were exceeded and Montage was renamed West Media Events.
At year end 31st March 2000, West Media Events had net assets of £238,250 and
made pre-tax profits of £97,000.
Mr. Rohan Courtney, Chairman of West 175, is a director and Chairman of West
Media Events. Accordingly, the Directors, other than Mr. Courtney, having
consulted with their Nominated Adviser Teather & Greenwood Limited consider
that the terms of the acquisition are fair and reasonable so far as the
shareholders are concerned.
At the time of the acquisition, West Media Events client base included blue
chip multinational companies in the retail, consumer, finance and IT sectors.
Since the acquisition, when the business was largely a UK corporate events
producer, West Media Event has expanded its activities into the US, added new
clients and increased its revenues.
Commenting, Rohan Courtney, Chairman of West 175 said: 'The acquisition of
West Media Events has proved a highly lucrative franchise and the enlarged
events division should pay for itself in its first 3 years of consolidation.
This would include start up costs of the launch of the US division and a trial
event in the US. We expect the West Media Events division as a whole to break
even in the 12 months to March 2001.'
He added: 'We are delighted with the performance of Matt Brockman, who heads
up the US operations and Steve Waring, who is running the UK operations.
They have expanded the operation in the UK, North America and also now manage
our publishing and merchandising activities.'
Planned live gourmet cookery events in 2000 / 2001 will include St Louis,
Minneapolis, San Diego and Cleveland.
Rohan Courtney, Chairman, West 175 Media Group Inc 020 8398 7175
Mobile: 07879 498544
Peter Binns, Binns & Co. 020 7786 9600