(Finance) – The Board of Directors of Netweeklisted on the Euronext Milan market, approved a number of related extraordinary operationsaimed at accelerating the project of sdevelopment and diversification of the core business publishing, through a capital strengthening and a liquidity endowment to favor and ensure the consolidation of a good positioning of the Company in the local publishing and advertising market.
In this context the Board of Directors approved the following: a report of exchange for the merger between Netweek and Media Group; the conferment quote Rete 7 in Netweek; a deal investment global corporate finance opportunities, the stock option planproxies for capital increases, calling of shareholders’ meetings.
“The underlying objective of the proposed merger – explains the company – is to create a new editorial entity, a leader in the local market, able to offer its advertisers an integrated and multi-platform range of local media (print, web and TV) Through an integrated commercial offer and the synergistic use of these communication tools, the Group will be able to further develop the advertising space sales market, also benefiting from the relationships developed over time with customers who already use the media of Netweek. In particular, the operation is part of a broader editorial integration project between the industrial activities of the Sciscione family – on the one hand – and the local media circuit of the Netweek group – on the other – as a result of which the Company could present itself on the Italian market as a leading operator in multi-channel publishing, with a network of over 50 information magazines local distribution, 44 online portals and 19 LCNs in digital terrestrial technology broadcast in 16 Italian regions”.
There Media Group rating is positioned in the interval between 26.8 million euros and 33.4 million with an average value of 29.5 million, while that of Netweek it is positioned in the interval between 12.1 and 17.4 million, with an average value of 14.4 million. Taking into account that until the completion of the Merger the shares representing the share capital of Netweek will be equal to 142,107,926 and the shares representing the capital of Media Group will in turn be equal to 10,000, the exchange ratio will be equal to 291,439,834 new Netweek shares in favor of Media Group shareholders and the unit price at which the new shares will be issued in the capital increase to service the merger will be equal to the ratio between the Fair Value of Netweek and the existing pre-merger shares, or 0.101 euros.
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