West 175 Media Group Inc
20 November 2002
20th November, 2002
WEST 175 MEDIA GROUP INC.
Disposal of Games Retailer in New Zealand
West 175 Media Group (the 'West Group') announces that it has completed the sale
of its 75% interest in the business and assets of Central Park Interactive
Limited ('CPI'), the New Zealand electronic games retailer, to Outdoor Retail
Group Limited (the 'Purchaser'), a New Zealand retail operation, which has also
purchased the remaining 25% holding in CPI. This disposal is in accordance with
West Group's policy of reducing its liabilities and overall operating costs and
achieving an orderly withdrawal from New Zealand.
The immediate effect of the disposal is
(i) the receipt in cash by West 175 Media (NZ) Limited of
approximately £140,000; and
(ii) the reduction of the liabilities of West Group by
The consideration consists of the Purchaser assuming responsibility for all
liabilities including the sum of NZ$450,000 (approximately £140,000) due to West
175 Media (NZ) Limited, West Group's wholly owned New Zealand holding company.
The sum of NZ$450,000 (approximately £140,000) is to be paid:
(i) NZ$350,000 (approximately £109,000) within 7 working days
of settlement, dependent on verification of stock valuations in the
(ii) NZ$100,000 (approximately £31,000) six months after
settlement, subject to a right of set off for any variation in the value
of assets or liabilities passing to the Purchaser.
The proceeds will be used to fund West Group's continuing working capital
West Group acquired a 75% interest in CPI in August 2000 for a consideration
satisfied wholly in shares. In the financial year to 31st March 2002, CPI had
revenues of NZ$6,200,000 (approximately £1,940,000) and profits after tax of
NZ$8,000 (approximately £2,500).
West 175 Media (NZ) Limited has previously 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
West 175 Media Group Inc.
020 7462 0632
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