LONDON, UK: DCD Media has conditionally agreed to sell the entire issued share capital of NBD to 108 Media Limited for a total consideration of up to £4.7 million in cash. NBD is the company’s sole direct subsidiary.
Timeweave Limited is a major shareholder of DCD Media. When Timeweave took control of DCD Media almost ten years ago, there were broad synergies with other media interests within the Timeweave investment group.
Those synergies no longer exist and DCD Media does not form part of the strategic landscape for Timeweave. In addition, Timeweave has indicated that it does not wish to provide further TV programme funding to DCD Media.
The Board considers that there are inherent market risks in the current operating model of the Company such that additional third-party funding is required to grow the business.
Also, the Company’s largest shareholder, Timeweave, has indicated that it is unwilling to further fund the business and the Board has therefore concluded that the Sale presents an attractive opportunity for the Company to realise value and secure an owner for the Company’s business in 108 Media that is expected to provide the support afforded by Timeweave over the last decade allowing the business to grow.
The Company understands that 108 Media has access to wider funding arrangements and the Board believes that 108 Media can support NBD and deliver a scale play into the market using the existing DCD Media assets held within NBD as the platform for achieving this.
The Board believes that the Sale represents good value for Shareholders and the Sale is considered by the Board to be positive for the Company’s Shareholders as a whole.
As at 11 November 2021 (the latest practicable date prior to the publication of this announcement) the Company had a total cash balance of approximately £3.85m, of which c.£3.31m will remain in NBD leaving c.£0.54m in the Company post Completion.
In addition, DCD Media will be receiving the Consideration over a period of time as set out in the circular (extracts of which can be found in the appendix to this announcement) which will supplement the Company’s cash reserves.
The remaining cash balance is deemed by the Directors as sufficient to cover outstanding payments and for general working capital purposes of the Company.
David Craven, DCD Media Executive Chairman, commented: “The Board of Directors is very pleased to announce, after a period of negotiation, it has agreed terms with 108 Media to sell the assets and liabilities of the Group. This is a hugely exciting opportunity for the business moving forwards, and the teams are looking forward to working collaboratively to further enhance the DCD Rights business following a period of sustained growth.” www.dcdmedia.co.uk