CSS Stellar PLC
26 September 2002
26 September 2002
CSS STELLAR PLC
('CSS STELLAR' OR THE 'GROUP')
CSS Stellar, the AIM listed sports and entertainment
management and marketing group, today announces it has
made a strategic investment in Target Distribution
Limited ('Target'), an international television
distribution company.
A majority shareholding in Target, representing 58.5
percent of the current issued share capital, is being
acquired by CSS Stellar from shareholder Tiger Aspect
Group ('Tiger Aspect'). Tiger Aspect was a founder
shareholder along with Alison Rayson, Target's Managing
Director who holds the balance of the Target shares, and
Talkback Productions Limited ('Talkback') when Target was
established in London in 1998. Talkback subsequently sold
its investment in Target to Tiger Aspect and Alison
Rayson, when the company was acquired by Pearson PLC in
2000.
The Group's investment on completion (which will also
include the assignment to CSS Stellar of the Tiger Aspect
loan to Target of £125,000) is for a cash consideration
of £568,183 and the issue of 155,000 ordinary shares of
50p each in CSS Stellar ('Ordinary Shares') at a price of
154.5p per share. The loan is being assigned to CSS
Stellar on the same terms. CSS Stellar will also be
providing a working capital facility to Target of up to
£400,000. Tiger Aspect has signed a one year lock-in not
to dispose of its shareholding in CSS Stellar. Target
will continue to be managed by Alison Rayson.
Target currently controls the television distribution
rights for almost 1,000 hours of popular drama,
animation, children's and light entertainment programming
as well as several programme formats. These programmes
include Popstars and Popstars: The Rivals, Footballers
Wives, Bad Girls and the new BBC quiz show The Chair,
hosted by John McEnroe. Target's programming sells to
over one hundred territories and three hundred and fifty
producers and broadcasters (of which the largest is Seven
Network in Australia) worldwide.
In the year to 31st December 2001, Target made an
adjusted operating profit of £217,000 (adjusted for non-
recurring items) on turnover of £4,731,000. At the same
date, the business had net liabilities of £25,000.
John Webber, Chairman of CSS Stellar, commented:
'This is an important strategic investment for the Group
and one we have long planned. Target is a highly
respected distributor with strong relationships among
leading international broadcasters. We, and especially
our colleagues at PFD, look forward to working with
Alison Rayson and her team to build a relationship which
should greatly enhance the media opportunities for the
Group. We are also delighted to have Tiger Aspect as a
shareholder.'
Andrew Zein, Managing Director of Tiger Aspect added:
'We have every confidence that Target will flourish under
the CSS Stellar umbrella and look forward to continuing
to work with both Target and CSS Stellar.'
Application will be made for the 155,000 Ordinary Shares
now being issued to be admitted to AIM. Admission of the
Ordinary Shares is expected and dealings are expected to
commence on 2 October 2002.
-ends-
Enquiries:
CSS Stellar plc 020 7078 1400
Sean Kelly, Finance Director and Deputy Chief Executive
This information is provided by RNS
The company news service from the London Stock Exchange
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