Statement re PROPOSED CANCELLATION OF TRADING IN DORI MEDIA GROUP SHARES
ON AIM
DORI MEDIA GROUP
PROPOSED CANCELLATION OF TRADING IN DORI MEDIA GROUP SHARES ON AIM
Dori Media Group (“DMG” or “the Company”), the international media
company active in the field of television, with a focus on production,
distribution, broadcasting and merchandising of Telenovela, today
announces that the board of directors of the Company in a meeting held
by it ("Board Meeting") has resolved to notify the Exchange, pursuant to
Rule 41 of the AIM Rules, of their intention to cancel (“Cancellation”)
the Ordinary Shares from trading on AIM, subject to the passing of a
resolution at a forthcoming Extraordinary General Meeting (EGM) which is
expected to be convened on May 12th, 2011. The Circular
covering the EGM and related materials will be delivered to all
shareholders of the Company in due course and a further announcement
will be made once these have been posted.
In reaching their decision to seek shareholder approval to cancel the
ordinary shares from trading on AIM, the board of directors has focused
on the following key factors:
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In light of the limited trading in the Ordinary Shares, the tangible
costs associated with maintaining the AIM quotation are
disproportionately high when compared to the benefits and the board of
directors considers that these funds could be better utilised in
running the business;
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The management time and the legal and regulatory burden associated
with maintaining the Company’s admission to trading on AIM is
disproportionate to the benefits to the Company;
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The Company, like many other quoted AIM companies of its size, has a
tightly held register of shareholders and suffers from a lack of
liquidity for its Ordinary Shares. In practical terms, this results in
a small free float and low trading volumes, which further reduces the
demand for the Ordinary Shares;
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The Company believes that the valuation placed on it by the AIM market
does not properly reflect its potential and by delisting it will be
able to negotiate better terms as and when it wishes to raise further
capital.
Accordingly, the Company’s board of directors believes that it is in the
best interests of the shareholders generally (including, for these
purposes, depositary interest holders) to seek Cancellation at the
earliest opportunity. The Company has, therefore, separately notified
the Exchange of its preferred date for the Cancellation, of Friday, 20
May 2011.
The Company is considering the use of a matched bargain facility
provider to maintain some liquidity in the Company’s shares post
delisting. Shareholders should be aware that there can be no certainty
that such a facility will be put in place. Further details of this will
be released on the Company’s website if arranged.
On 13 April 2011, the Company received a letter from a member of the
Company’s controlling shareholders’ group, who confirmed its intent in
making a tender offer, by itself or together with other shareholders of
the Company, for up to 2.7 million Ordinary Shares, if the Company’s
shareholders approve the Cancellation at the EGM. The price of the
tender offer, if made, would be 50 pence per Ordinary Share (the
“Proposed Tender Offer Price”). The Proposed Tender Offer Price reflects
a premium of approximately 13.6 per cent. to the closing middle market
price of Ordinary Share on AIM on 13 April 2011, (being the date the
Company received such a letter) and a premium of approximately 5 per
cent. to the average closing middle market price of an Ordinary Share on
AIM during the three month period ending on 13 April 2011. At this
stage, there is no certainty that such a tender offer will be made.
On 13 April 2011, the Company received a further indication from certain
members of its board of directors and other authorised participants of
the Board Meeting, on their behalf and on behalf of their respective
affiliates, and who hold in the aggregate approximately 75 per cent. of
the Company's existing issued share capital, of their intention not to
sell their Ordinary Shares as part of the aforesaid tender offer (if
made).
For further information on Dori Media Group, please visit our website on www.dorimedia.com
or contact:
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Dori Media Group Ltd.
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Shared Value Limited
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Nadav Palti, CEO & President
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Mark Walter
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Tel: +972 3 7684000
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Investor & Media relations
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[email protected]
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Tel. +44 (0) 20 7321 5010
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[email protected]
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Daniel Stewart & Company
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Paul Shackleton/Oliver Rigby
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Tel. +44 (0) 20 7776 6550
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Dori Media Group is an international group of media companies, located
in Israel, Switzerland, Argentina and the US. The group produces and
distributes TV and New Media content, broadcasts various TV channels and
operates video-content internet sites. The group owns approximately
5,130 TV hours, more than 5,000 clips of 3 minutes on average, 120 - 9
minute webisodes and around 556 1-5 minute cellular episodes of
Telenovelas and daily series that it sells to a wide variety of
audiences in more than 80 countries. It owns and operates two telenovela
channels, Viva and Viva Platinum broadcasted on all Israeli
multi-channel platforms and via the co-branded internet site offering
telenovelas to Israeli surfers through Walla.com. Dori Media Paran and
Dori Media Darset produce top-end series as well as daily dramas for the
Israeli and international markets. Dori New Media develops and produces
formats specially tailored for the internet and cellular platforms, and
realizes new opportunities enabled by the new technologies. Dori Media
Spike packages, produces and operates the main movie channels on the
Israeli cable TV platform and general entertainment channels on all
Israeli TV multi-channel platforms. In Indonesia and Malaysia, the
company operates the Televiva Vision 2 channel that is devoted to
telenovelas and Baby TV Vision 3 for toddlers, in addition to the Ginx
gamers’ channel. Ginx is localized and broadcasted to Turkey as well.
Novebox operates an ad-based VOD and SVOD commercial internet site
targeted at the Hispanic and Latin American audience offering a variety
of shows and movies. The group is traded on the London Stock Exchange
where its symbol is DMG. For more information on Dori Media, visit our
corporate website at http://www.dorimedia.com/.
