Primedia Limited - Primedia acquires altmedia
Primedia Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/003355/06)
Share code: PMA ISIN: ZAE000035119
Share code: PMN ISIN: ZAE000035127
(`Primedia` or `the Company`)
PRIMEDIA ACQUIRES ALTMEDIA
Primedia announced today that it has acquired Altmedia for an undisclosed
consideration. This acquisition further strengthens Primedia`s leadership in the
growing out-of-home sector of the media industry.
Altmedia comprises two major business units, GMR, which is a leading player in
transit media and The Letter Corporation, which is South Africa`s leading
supplier of washroom advertising. Both GMR and The Letter Corporation have a
national presence. Altmedia also has a strategic holding of outdoor advertising
sites at the airports.
Commenting on the transaction, William Kirsh, CEO of Primedia said: `This is
another great acquisition for Primedia, which enhances shareholder value.
Altmedia`s range of businesses are very complimentary to Primedia`s existing
media portfolio. In addition, Altmedia has very good operating margins and
generates quality free cash flow`.
Kirsh added: `The Letter Corporation creates an entry for Primedia into the
niched washroom advertising space. This is showing excellent growth due to the
quality of The Letter Corporation`s exclusive locations and the very targeted
nature of the medium. The Letter Corporation will be owned by Primedia
Unlimited, established last year by Primedia to focus on new sectors of the
media industry. This will be the fifth media company to be acquired by Primedia
Unlimited. GMR, which competes with Comutanet, Primedia`s commuter advertising
arm, will be absorbed into Comutanet, and high levels of efficiencies are
anticipated. The outdoor advertising sites will be taken over by Primedia
Outdoor, which will strengthen its presence at the highly sought after airport
locations.`
The transaction is not a category transaction in terms of the JSE Listings
Requirements.
26 July 2005
Sandton
Sponsor; Investec Bank Limited
Brunswick 011 268 5750
Rob Pinker 083 326 7794
Di Munro 083 326 5958
Date: 27/07/2005 07:37:36 AM
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