Business
Re SIS Dividend
Re SIS Dividend.
About this update from Catalyst Media Group Plc
[{"type":"text","content":"\n Catalyst Media Group PLC\n28 November 2005\n\n\n28 November 2005\n\nCatalyst Media Group Plc\n\nCatalyst Media Group plc ('CMG') is pleased to announce that the Board of\nSatellite Information Systems (Holdings) Ltd ('SIS') has resolved to pay an\ninterim dividend of £10 million with immediate effect. CMG's share of this\ndividend is £2.2 million which will be applied to the early reduction of debt\nwhich was raised to part finance the acquisition of a 20% interest in SIS (the\n'Acquisition') in September 2005 for £23 million in cash. This interest was\nincreased to 22.2% following the buy back of shares by SIS in November 2005.\n\nThe Acquisiton was partly financed by the issuance of secured deep discounted\nBonds to Eureka Interactive Fund Ltd for a subscription of £11.75 million.\nWhilst the Bonds have a nominal value on maturity of £16.7 million they may be\nredeemed at any time at a deep discount which equates to an interest rate of 10%\nper annum. Consequently, following application of the funds from this dividend,\nthe outstanding balance will be reduced from £12.09 million, including accrued\ninterest, to £9.9 million.\n\nSIS has, in the recent past, had a policy of declaring a substantial dividend\nevery four years. The Directors of CMG expect the next dividend in line with\nthis policy to be declared before the end of 2006.\n\nSince the Acquisition, CMG has comprehensively restructured and the Group is now\nprofitable on a monthly basis.\n\nEND\n\n\n\n\n This information is provided by RNS\n The company news service from the London Stock Exchange\n \n ","length":1803,"tagName":"div"}]