Business
Proposed Disposal of Mediapolis
Proposed Disposal of Mediapolis.
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[{"type":"text","content":"\n \nRNS Number : 4187H Brainspark PLC 27 May 2011 \n \n\n27 May 2011\n \nBrainspark plc\n(\"Brainspark\" or \"the Company\")\n \n \nProposed Disposal of Mediapolis Interests \n \nBrainspark plc (AIM: BSP), a fast growing international investment company, announces it has subscribed to an increase in capital of EUR 2.5 million in Mediapolis SpA (\"Mediapolis\"), bringing the Company's direct and indirect holding (including Mediapolis Investment SA) in Mediapolis to just over 75 per cent. of the issued share capital.\n \nBrainspark intends to satisfy its participation in the share capital increase in Mediapolis by contributing to Mediapolis its 20 per cent interest in ORH s.r.l. (the holding company of the Ora Hotel Group) at an implied valuation, confirmed by a third party expert, of EUR 2 million and its holding of 1,400,000 shares in Moggle, Inc. The EUR 2 million valuation for the 20 per cent. stake in ORH s.r.l. represents a 100 per cent. premium on the acquisition cost of that stake announced in March this year.\n \nConcurrently, Mediapolis has also received a non-binding indicative offer for the land near Albiano (Ivrea) and the Company's interest in the Mediapolis theme park (the \"Mediapolis Interests\") at a multiple of the book value of these assets. The indicative offer envisages that the consideration payable to Brainspark will be satisfied via the issue of shares in an Italian real estate fund, authorised by the Bank of Italy (the \"Real Estate Fund\").\n \nIn line with Italian company law the percentage of the share capital of Mediapolis now held by Brainspark allows it to vote on any corporate decision, affecting the Mediapolis project, whether in relation to ordinary or extraordinary matters including progressing with negotiations in relation to the indicative offer.\n \nShould a transaction involving the Mediapolis Interests be finalised, Brainspark intends to use the shares in the Real Estate Fund to be received as consideration to facilitate funding of its other investing activities and as such it intends to retain such shares, although it might use them as collateral against future bank lending.\n \nAlthough Mediapolis is the largest investment in the Brainspark portfolio, the Board has agreed that the cost and time it will take to develop the theme park is n...