TORONTO--(BUSINESS WIRE)--KEW MEDIA GROUP Inc. (“KEW”) (TSX:KEW and KEW.WT) today announced the sale of its 42.8% equity interest in Helsinki, Finland-based Aito Media Oy (“Aito”) to France-based Largardere Studios.
KEW received initial consideration of approximately €3.0 million (Cdn $4.4 million) in cash and is also entitled to a potential earn-out of up to approximately €1.5 million (Cdn $2.2 million) in cash, based on certain future profit performance criteria. The total price is based on 7 to 10.5 times the buyer’s EBIT calculation, which broadly equates to 6 to 9 times KEW’s Adjusted EBITDA. These multiples are based on the minimum and maximum price determined by the earn-out, respectively.
“The sale of this non-core interest in Aito was the result of a strategic review of our growth priorities and provides cash for deployment in KEW’s focused acquisition program,” said Steven Silver, CEO of KEW. “We acquired this interest as part of the purchase of Content Media Corporation (recently re-branded as KEW MEDIA.) We wish Ilkka and Eero and the team at Aito all the best in the future.”
Non-IFRS Measures
This news release contains references
to Adjusted EBITDA. Adjusted EBITDA is calculated as EBITDA
excluding transaction and exceptional costs, gain/loss on change in fair
value of financial liabilities and the proportion of Adjusted EBITDA
attributable to non-controlling interests. Adjusted EBITDA does not have
a standardized meaning under International Financial Reporting Standards
(“IFRS”) as prescribed by the International Accounting Standards Board
and is therefore unlikely to be comparable to similar measures presented
by other companies. Adjusted EBITDA should not be considered in
isolation nor as a substitute for analysis of financial information
reported under IFRS. The Company believes that non-IFRS measures,
specifically EBITDA and Adjusted EBITDA, are frequently used by
securities analysts, investors and other interested parties as measures
of financial performance and to provide supplemental measures of
operating performance and thus highlight trends that may not otherwise
be apparent when relying solely on IFRS financial measures.
Forward-Looking Statements
This news release may include
forward-looking statements. All such statements constitute forward
looking information within the meaning of securities law and are made
pursuant to the “safe harbour” provisions of applicable securities laws.
Forward-looking statements may include, but are not limited to,
statements about anticipated future events or results including comments
with respect to the Company’s objectives and priorities for 2017 and
beyond, and strategies or further actions with respect to the Company,
its business operations, financial performance and condition.
Forward-looking statements are statements that are predictive in nature,
depend upon or refer to future events or conditions and are identified
by words such as “will”, “expects”, “anticipates”, “intends”, “plans”,
“believes”, “estimates” or similar expressions concerning matters that
are not historical facts. Such statements are based on current
expectations of the Company’s management and inherently involve numerous
risks and uncertainties, known and unknown, including economic factors.
The forward-looking information contained in this news release is presented for the purpose of assisting readers in understanding the Company’s business and strategic priorities and objectives as at the periods indicated and may not be appropriate for other purposes. A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward-looking statements contained in this news release, including, among other factors, those referenced in the section entitled “Risk Factors” in the Company’s annual information form for the year ended December 31, 2016, a copy of which is available on the SEDAR website at www.sedar.com under the Company’s profile.
Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that the Company considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. Readers are cautioned to consider these and other factors carefully when making decisions with respect to the Company and not place undue reliance on forward-looking statements. Circumstances affecting the Company may change rapidly. Except as may be expressly required by applicable law, KEW MEDIA does not undertake any obligation to update publicly or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
About KEW MEDIA GROUP INC.
KEW MEDIA GROUP is a leading
publicly-listed content company that produces and distributes
multi-genre content worldwide. Companies included in the KEW family are
the production companies: Architect Films, Bristow Global Media,
Campfire Film & Television, Collins Avenue Productions, Frantic Films,
Jigsaw Productions, Media Headquarters, Our House Media and Spirit
Digital Media; and the distribution companies: Content Media Corporation
(now re-branded KEW MEDIA) and TCB Media Rights.
With primary offices in London, Los Angeles, New York and Toronto, the KEW MEDIA GROUP companies develop, produce and distribute more than 1,000 hours of content every year, as well as distribute a library of more than 10,000 hours, to almost every available viewing platform internationally. KEW aspires to offer great content from all over the world to viewers of all ages and tastes. We promote transparency, equality, respect, and inclusiveness and plan to grow with the benefit of people from a wide range of perspectives and backgrounds.
