Business
Disposal
Disposal.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n RNS Number : 2507T Asia Digital Holdings PLC 24 September 2010 \n \n\n\n\n\n\nPress release\n\n\n24 September 2010\n\n\n\n\n \n \n \nAsia Digital Holdings Plc\n(\"ADH\" or the \"Company\")\n \nDisposal and Posting of Circular to Shareholders\n \nThe Board of ADH announces that it is today posting to Shareholders a circular (the \"Circular\") in relation to the proposed disposal of its wholly-owned subsidiary Deal Group Media Pty Limited (\"DGM Australia\") and a Notice of General Meeting. The Circular and Notice of General Meeting shall shortly be available at the Company's website www.adhplc.com.\n \nThe Company has today entered into a conditional agreement for the disposal of one of its principal trading subsidiaries, DGM Australia to Comtel Corporation Limited (\"Comtel\"), a company publicly listed on the Australian Stock Exchange (ASX:CMO), for a consideration of AU$7,750,000. Consideration net of asset adjustment and before expenses of the transaction is expected to be in the range of AU$4,500,000 and AU$5,000,000.\n \nADH's principal operating activities are conducted through two core business lines - an outsourced sales house for digital media owners, AKTIV, and a business that delivers leads and sales for advertisers, DGM. DGM's delivery channels include an affiliate network and search engine marketing.\n \nIn an affiliate channel participant web site, owners are paid on results delivered for advertisers from digital promotion of the advertisers' offering, which typically entails consumers actually buying products and services. Results are tracked by DGM's technology environment and account management teams that service both advertisers and participating web site owners. Search engine marketing involves management of an advertiser's purchase of traffic/clicks through sponsored links on major search engines such as Google or Yahoo and/or web site optimisation for better positioning on search engines unpaid or natural listings.\n \nDGM represents the bulk of sales and operating profit of the ADH Group, accounting for 95 per cent. and 89 per cent. of Group sales and operational profits respectively in the first half of 2010 and 91 per cent. and 86 per cent. of Group sales and operational profits respectively for the year ended 31 December 2009.\n \nDGM's ope...