Acquisition

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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