Proposed Disposal of Mediapolis
27 May 2011
Brainspark plc
("Brainspark" or "the Company")
Proposed Disposal of Mediapolis Interests
Brainspark plc (AIM: BSP), a fast growing international investment company, announces it has subscribed to an increase in capital of EUR 2.5 million in Mediapolis SpA ("Mediapolis"), bringing the Company's direct and indirect holding (including Mediapolis Investment SA) in Mediapolis to just over 75 per cent. of the issued share capital.
Brainspark intends to satisfy its participation in the share capital increase in Mediapolis by contributing to Mediapolis its 20 per cent interest in ORH s.r.l. (the holding company of the Ora Hotel Group) at an implied valuation, confirmed by a third party expert, of EUR 2 million and its holding of 1,400,000 shares in Moggle, Inc. The EUR 2 million valuation for the 20 per cent. stake in ORH s.r.l. represents a 100 per cent. premium on the acquisition cost of that stake announced in March this year.
Concurrently, Mediapolis has also received a non-binding indicative offer for the land near Albiano (Ivrea) and the Company's interest in the Mediapolis theme park (the "Mediapolis Interests") at a multiple of the book value of these assets. The indicative offer envisages that the consideration payable to Brainspark will be satisfied via the issue of shares in an Italian real estate fund, authorised by the Bank of Italy (the "Real Estate Fund").
In line with Italian company law the percentage of the share capital of Mediapolis now held by Brainspark allows it to vote on any corporate decision, affecting the Mediapolis project, whether in relation to ordinary or extraordinary matters including progressing with negotiations in relation to the indicative offer.
Should a transaction involving the Mediapolis Interests be finalised, Brainspark intends to use the shares in the Real Estate Fund to be received as consideration to facilitate funding of its other investing activities and as such it intends to retain such shares, although it might use them as collateral against future bank lending.
Although Mediapolis is the largest investment in the Brainspark portfolio, the Board has agreed that the cost and time it will take to develop the theme park is not in keeping with the investing strategy of the Company. Brainspark has been instrumental in driving the project to its current advanced stage and the Board is happy to dispose of the development with a substantial return.
A further announcement will be made once the agreement in relation to the Mediapolis interests has been finalised.
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For further information please contact:
Brainspark plc +39 347 66 20 664
Alfredo Villa, Chairman and CEO
Arbuthnot Securities +44(0) 20 7012 2000
Antonio Bossi / Ed Groome
Leander PR +44(0) 7795 168 157
Christian Taylor-Wilkinson
About Brainspark Plc
Brainspark plc (AIM: BSP) is an AIM listed investment company pursuing a dynamic strategy to create a comprehensive portfolio of companies primarily encompassing the interactive media, leisure, entertainment and financial services sectors mainly in Italy but also other European countries. The company may be either a passive or active investor and Brainspark's investment rationale ranges from acquiring minority positions with strategic influence through to larger controlling positions.
This information is provided by RNS
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