Reference is made to the previous notice regarding the sale of Orkla Media to Mecom Group plc. The parties have agreed to enter into exclusive negotiations from today's date, with the intention of signing an agreement in mid-July. Prior to signing Mecom will raise the necessary capital.
The parties have agreed on a price of NOK 7 billion for the transferred assets (Enterprise Value). The equity value will be NOK 7.5 billion, after adjustment for cash and other financial capital.
Orkla wishes to make a financial investment in Mecom Group plc. It is anticipated that as a result of the placing, Orkla will become a significant shareholder in Mecom with a stake of approximately 15 per cent of the enlarged group. Orkla has been offered a seat on the company's Board.
Orkla ASA will retain its interest in Hjemmet Mortensen (50 per cent of shares, 40 per cent financial interest) and Orkla Media Germany. In 2005 Hjemmet Mortensen had an EBITDA (100 per cent) of NOK 344 million. Based on the web newspaper Netzeitung.de Orkla Media Germany is currently expanding its operations.