West 175 Media Group Inc
01 October 2002
1st October, 2002
WEST 175 MEDIA GROUP INC.
Disposal of Events Management Companies and Repayment of Loan
Disposal of Events Management Companies
West 175 Media Group Inc. (the 'West Group') announces that it has completed the
sale of the entire issued share capital of West Media Events Limited and
Gourmand International Limited (the 'Companies') to Strategic Planning
Associates, SL ('SPA').
The Board anticipates that the aggregate deferred consideration over a three
year period will be approximately £500,000. The immediate effect of the
transaction is to reduce the liabilities of the West Group by £133,000 and is in
accordance with West Group's policy of reducing its overall operating costs.
The consideration, all of which is deferred, consists of:
i. a payment of £131,000 (payable in instalments of £31,000, £50,000 and
£50,000 on 24th April 2003, 2004 and 2005 respectively);
ii. an additional payment based on 5% of the gross revenues of the Companies
for the 3 years ending 31st March 2003, 2004 and 2005 payable 60 days
after the end of the relevant year, up to a cumulative maximum of
£500,000. This is expected to add a further £370,000.
The proceeds will be used to fund West Group's continuing working capital
Gourmand International was formed in March 2001 to exploit the rights and assets
which West Group purchased from SPA at that date. West Media Events runs live
corporate events for clients in Europe. In the year to 31st March 2002 Gourmand
International had revenues of £nil and losses after tax of £495,000; West Media
Events had revenues of £1,293,000 and losses after tax of £137,000.
The sale of the Companies effects the disposal of all West Group's trading
operations in the UK and Europe. West Group's subsidiary, West 175 Media (NZ)
Limited ('West NZ') has sold or closed all loss making New Zealand businesses
and is currently making disposals of the remaining businesses in an orderly
withdrawal from New Zealand. This programme is expected to be completed by the
end of 2002, resulting in positive net proceeds for the West Group.
Repayment of Loan
Further to the announcement on 16 September 2002, the West Group announces that
on 30th September 2002 the final instalment of the loan from Film Investment
Corporation of New Zealand No.2 Limited ('FIC') to West NZ, the holding company
of all the New Zealand operations of the West Group, was repaid in full in cash
together with a contribution towards FIC's legal cost. The final payment of
NZ$853,000 (equivalent to approximately £258,000) completes the repayment of the
loan of NZ$1,350,000 (equivalent to approximately £410,000) and has the effect
of releasing the debenture held by FIC that was secured on all the assets of
Repayment of the loan and the release of the debenture will give the Board full
flexibility with respect to the remaining businesses in New Zealand.
West 175 Media Group Inc
020 8398 7175
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