TV-Loonland has successfully concluded the sale process of its shareholding in Metrodome Group, its U.K. subsidiary, making them debt-free for the first time in seven years. Their CEO, Simon Flamank, also announced he will be stepping down as chairman of the company after the sale is complete.
The deal sees MediaPro Management of Bucharest, Romania, initially purchasing a 50.1 percent stake in Metrodome Group from TV-Loonland's existing 61.7 percent holding in Metrodome at a price of 2.62 pence per share. The deal values TV-Loonland's entire stake at approximately 2.5 million Euros.
In accordance with Rule 9 of the U.K. Takeover Code, MediaPro Management has also announced a mandatory public offer at 2.62 pence per share for all the outstanding shares of Metrodome.
This mandatory public offer will run for a period of 21 days, following which, TV-Loonland's remaining 11.6 percent shareholding will either be acquired by MediaPro Management at the same price as the public offer, or sold in the market depending on the level of acceptances from the offer.
Flamank said, "The effect of this transaction coupled to the earlier announcement this week about the sale of the Hasbro Library back to Hasbro has enabled the group to repay all of its remaining 5 million Euros of bank debt and therefore become a debt free business for the first time in the past seven years, which was always our first objective."
"We will now consider further the various alternative scenarios which may exist for the remaining core children's animation business and in particular the new properties that we have been developing."
"The conclusion of the sale process of Metrodome Group will also bring to an end my involvement as chairman of that company, which has covered the past two years. Following the corporate and financial restructuring of the company that we undertook in the autumn of 2006 the company has increased its revenues in 2007 by some 66.7 percent, and over the last two years has acquired distribution rights for four Oscar nominated films, including one winner for Best Foreign Language Film, THE COUNTERFEITERS."
"We are delighted with MediaPro's involvement now in Metrodome and wish both parties every success for the future."
