Further to the announcement made on 1 February 2006, Milestone announces it has today completed the sale of its beneficial controlling shareholdings in Kestrel FM and Kick FM to Provincial Broadcasting Companies Limited.
Additionally, Milestone confirms it intends to seek to complete the proposed disposal of its beneficial controlling shareholding in Rugby FM to CN Group Limited on or before 27 February 2006.
The two ordinary resolutions required under the AIM Rules to approve the proposed sale of Milestone’s interests in Kestrel FM, Kick FM and Rugby FM (‘Resolutions’) were passed unanimously by Shareholders attending the Extraordinary General Meeting of the Company held this morning. In addition, over 99% of the qualifying Shareholder votes received by proxy were cast in favour of the Resolutions or at the Chairman’s discretion.
Following completion of the EGM, Andy Craig, Chief Executive, commented:
‘I am grateful to Shareholders for giving their support to the Resolutions proposed. The Board will now pursue with rigour the strategy of developing Milestone’s wholly-owned local media assets primarily focused on Oxfordshire, and exploring all opportunities to maximise shareholder value, as set out in the announcement made on 1 February 2006.’
Milestone is today in receipt from Provincial of ?1,302,214 representing the iinitial instalment of the consideration due for the transfer of the Company’s shares and loans in Kick FM and Kestrel FM. In total, the Company expects to receive gross proceeds for the sale of its controlling shareholdings, shareholder loans and net assets in Kestrel FM, Kick FM and Rugby FM of approximately ?2 million. ?211,400 of the monies received today have been used to discharge the outstanding loan arrangements with Manchester Securities Corporation.
The full terms of the disposal of Milestone’s interests in Kestrel FM and Kick FM are as per the announcement made to the London Stock Exchange by the Company on 1 February 2006.