Business
Result of GM, Disposal of Dea
Result of GM, Disposal of Dea.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n RNS Number : 1952U Asia Digital Holdings PLC 11 October 2010 \n \n\n \n \n\n\n\n\nPress release\n\n\n11 October 2010\n\n\n\n\n \nAsia Digital Holdings Plc\n \n(\"ADH\" or the \"Company\")\n \n \nResult of General Meeting \nDisposal of Deal Group Media Pty Limited \n \n \nThe Board of ADH announces that at a General Meeting of the Company held today the resolution seeking shareholder approval for the sale of the entire issued share capital of Deal Group Media Pty Limited (\"DGM Australia\") to Comtel Corporation Limited (\"the Disposal\") and the grant of a perpetual licence over all intellectual property owned by ADH used in the business and operations of DGM Australia was duly passed.\n \nFollowing completion of the Disposal, ADH will have cash resources of approximately £1,900,000 (in addition to conditional deferred consideration of up to £607,000 which is expected to be paid within approximately thirteen months).\n \nOut of the proceeds, and having received a repayment request from Mr John Porter post issue of the circular, the Company will, by 8 November 2010, repay the convertible loan of £500,000 along with accrued interest of approximately £100,000.\n \nThe Directors are excited by the opportunity to evolve the business with a pure Asian focus armed with a much stronger, debt free balance sheet. \n \nIt is notable that out of ADH's 450 current clients before the Disposal of the DGM Australia business, the majority of these clients are in Asia and remain with the Company post Disposal. \n \nThe revenues and profitability that will be lost as a result of the transaction will impact the Company's trading performance in the short term, but the Board believes that the more material growth opportunity lies within Asia. Therefore, the post transaction Company has the potential to deliver more shareholder value than would otherwise have been the case.\n \nPost Disposal growth is expected throughout the operation and in particular in China where an embryonic DGM business is servicing Dell, their first client, and where the AKTIV business has recently agreed an exclusive representation deal to sell the BBC's local digital advertising inventory.\n \nDespite relatively low levels of digital advertising spend, ADH's operations in India...