'Sunday Sport' publisher catches the eye of potential bidders
Wednesday 25 February 2009
Suitors are ogling the assets of the Sunday Sport's publisher Sport Media Group, as it revealed yesterday that it had received "a number" of approaches over a potential takeover.
This comes as welcome news after the group admitted it still had not been able to renegotiate its debt facility, despite the deadline fast approaching. The group, which has suffered a traumatic 15 months since it was created through a reverse takeover, told investors of the approaches for all or part of the group yesterday.
The announcement caused shares in Sport Media Group to jump by 44 per cent, or 1p, to 3.29p.
Sport Media Group said in a statement to the Stock Exchange: "Following a number of unsolicited approaches, the board is exploring all opportunities to sell the business, in part or whole." It added that there could be "no certainty that any sale of the business will proceed or that an offer will be made for the company or as to the terms on which any such offer might be made".
It added that it had not agreed with its bankers on renegotiating its debt. It has a deadline of 6 March for a new facility.
At the beginning of January, Sport Media Group admitted it had breached a banking covenant, and was locked in talks with bankers on refinancing its debt. The group added that it was also considering alternative plans for funding. The announcement sent its shares tumbling 40 per cent.
Yesterday, the board said the talks were ongoing but that it "remains optimistic that an extension to facilities can be achieved".
Sport Media Group publishes the Sunday Sport and the Daily Sport as well as providing content delivered over the internet and mobile phones. It has struggled since it was bought by Interactive World in a £50m reverse takeover in September 2007. In April, it launched a £1m redesign which flopped with its readers, and circulation has fallen ever since. In June, it warned on profits for the second time in two months. It made a pre-tax loss of £18.2m in the year to July.
The credit crunch has had a particularly devastating effect on the media sector. Publishers have been forced to cut costs and lay off staff on falling circulation and a drop in advertising revenues, while the sector has also been hit by a rise in newsprint costs.
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 2 Gingers face extinction due to climate change, scientists warn
- 4 BBC’s new Game of Thrones slayer 'The Last Kingdom' relies on Saxon appeal, creators say
- 5 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Jennifer Lawrence face palms Emma Watson at Christian Dior show in Paris
Gingers face extinction due to climate change, scientists warn
Pamplona Running of the Bulls 2014: Briton critically injured in San Fermin festival
Israel's deadliest Gaza air strikes yet kill five children from same family as Palestinian rocket barrage continues
Sustained immigration has not harmed Britons' employment, say government advisers
British jihadist calls for 'flag of Islam' over Downing Street and Buckingham Palace
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£200 - £450 per day: Harrington Starr: Web Services Developer Web Services, WP...
£18000 - £25000 per annum + DOE, OTE £40000: SThree: LONDON - BRISTOL - DUBLIN...
£250 - £295 per day + competitive: Orgtel: Financial Accountant - IFRS - Glouc...
£30000 - £40000 per annum + excellent benefits: Deerfoot IT Resources Limited:...