Information  X 
Enter a valid email address

Dori Media Group (DMG)

  Print   

Thursday 14 April, 2011

Dori Media Group

Statement re PROPOSED CANCELLATION OF TRADING I...

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:

  • 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;
  • 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;
  • 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;
  • 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:

Dori Media Group Ltd.         Shared Value Limited
Nadav Palti, CEO & President Mark Walter
Tel: +972 3 7684000 Investor & Media relations

[email protected]

Tel. +44 (0) 20 7321 5010

[email protected]

 
Daniel Stewart & Company
Paul Shackleton/Oliver Rigby
Tel. +44 (0) 20 7776 6550

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/.


a d v e r t i s e m e n t