Update on Mediapolis
11 October 2012
Brainspark Plc
("Brainspark" or "the Company")
UPDATE ON MEDIAPOLIS SALE
Brainspark, the AIM listed international investment company, provides an update to shareholders regarding its investment in Mediapolis SpA ("Mediapolis").
The Company is currently progressing discussions in relation to the sale of the land of Mediapolis with two new investment funds, one Italian and one Italian/American, due to the breakdown in negotiations with Sorgente SGR, following the refusal by the mortgage holding Italian bank to transfer the land's mortgage. The Company yesterday received a preliminary non-binding offer from one of the parties, with terms more favourable than the previous offer from Sorgente, and it will provide shareholders with a further update once a binding agreement has been reached. The Board remains focused on reaching a swift agreement with one of these investment funds.
Further, the Company has recently received permission to designate 118,000 square metres of the land for commercial real estate development (as well continuing with the development of the original theme park) and is currently looking at the viability of dividing the land in order to sell the commercially permitted land separately. It is expected that this approach will result in a release value for shareholders in a more timely manner.
The current situation has arisen from the dire economic position in which Italy finds itself in; with the banks providing very little debt for real estate development and a fall in the number of equity investors looking for new development projects in the Italian real estate sector.
It is the Board's key focus to seek an exit for the Mediapolis investment and, recent valuations of the land, together with the positive tone of discussions with the new potential purchasers, lead the Board to believe that there is significant value in the investment.
Alfredo Villa, Executive Chairman of Brainspark, commented, "While disappointed in the failure to close the sale with Sorgente, we remain confident that one of the new negotiations will quickly lead to a contract being signed for the sale of the land. Despite the poor economic situation in Italy, Mediapolis is still one of the best situated development sites in northern Italy and now offers potential buyers the opportunity to develop both commercial and leisure projects. We will update shareholders in due course with the progress of our negotiations."
-ends-
For further information please contact:
Brainspark plc +39 02 525 051
Alfredo Villa, Executive Chairman
Westhouse Securities (Nominated Adviser & Broker) +44 (0) 20 7601 6100
Antonio Bossi
Jonathan Haines
Leander (Financial 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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