| Mon 15 Apr 2002, 0:00 | | Primedia Drives Shareholder Value In Primecom |
|
Press Release
Primedia today announced further steps in its drive to extract shareholder
value from Primecom, the group's UK based one-to-one business.
Earlier this month, the sale of C3, Primecom's direct marketing consultancy,
was concluded. The value of the transaction, including both shares and
assumed debt, equated to approximately R14, 5 million. Primecom's digital
communications business Wheel Group also announced that it would be taking
key strategic steps to realign its business, enabling it to take advantage
of its specialist areas of knowledge in retail, financial services,
entertainment and luxury goods.
Commenting on these developments Primedia CEO William Kirsh said: "We are
pleased with the continued progress that is being made to unlock shareholder
value in Primecom, in the context of difficult market conditions. The sale
of C3 has resulted in a reduction of our international debt and is headline
earnings enhancing as C3 reported an after tax loss for the 2002 interim
period.
"The developments at Wheel Group should improve the business's ability to
compete and restore profitability. By having three targeted propositions,
Wheel can help clients better maximise customer value by offering customized
solutions."
The new units within Wheel Group will be known as Wheel: Retail, Wheel:
Financial and Foresight (which will specialise in entertainment and luxury
goods). Wheel's existing client base in the three distinct areas include
some of the biggest brand names in the UK. For Wheel: Retail, these include
Marks and Spencer, Safeway and Early Learning Centre; in the financial
services space, these include Abbey National, National Savings and Halifax
Bank of Scotland (HBoS); and in Foresight, existing clients include 20th
Century Fox, Paul Smith and Dior.
- ENDS -
Enquiries:
William Kirsh CEO,
Primedia 082 441 2714
Rob Pinker Brunswick 011 442 8803
083 326 7794
Di Munro Brunswick 011 442 8803
083 326 5958
Wheel Group
Wheel Group creates active experiences of brands in all digital and
traditional channels. It advises on, creates, designs and develops solutions
covering Internet, iTV, wireless and traditional media. With over 90
employees it has a broad range of clients, which include Marks & Spencer,
Abbey National, Safeway, Halifax Bank of Scotland Group, Dior and Cerruti.
The Wheel Group is owned by Primedia.
