Totally Plc Acquires US Jewish Newspaper
Totally Plc, the media and communications group which targets the UK’s Jewish community, is pleased to announce that it has exchanged contracts to acquire the entire issued share capital of Jewish Advocate Publishing Corporation, which through a subsidiary owns The Jewish Advocate, New England’s leading weekly Jewish newspaper.
Steve Burns, founder and chief executive of the Group commented, “This acquisition represents a significant step towards Totally building an international media and communications group targeting one of the world’s most affluent, educated and influential communities, the Jewish community.”
The Board believes the combination of the two operations will yield significant benefits for the enlarged group, including the creation of editorial and infrastructure based economies of scale and, the development of a more sophisticated and far-reaching sales proposition, which should create opportunities for significant revenue growth.
Dr Michael Sinclair, non-executive chairman of Totally, said: "This is a transforming deal for Totally. Acquiring one of the oldest East Coast weekly Jewish newspapers provides the group with a springboard from which to expedite its US based and international development”
The Rebbe, who once served as a Director and Executive Vice-President of media-entertainment company Viacom, Inc. and Viacom International commented, “We have great confidence in Totally’s senior management team and their ability to develop and maximise the full potential of the Company's expanded and new assets, and to continue to grow the company for the benefit of all shareholders”.
Jewish Advocate Publishing Corporation is a private company, which through its wholly owned subsidiary, The Jewish Advocate Inc., owns The Jewish Advocate, the oldest regional, English-language, weekly Jewish newspaper in the USA. In the year to 31st December 2002 the company incurred a loss after tax of $10,812 on turnover of $1,296,778. As at 31st December 2002 it had gross assets of $147,396.
The vendor, The Zvhil-Mezbuz Rebbe, Grand Rabbi Y.A Korff of Boston (“The Rebbe”), will receive consideration of approximately £900,000 to be satisfied by the issue of 20,500,000 new ordinary shares in the Company (the “Consideration Shares”), representing 26.05 per cent. of the enlarged issued share capital of the Company. In addition, The Rebbe will, conditional upon shareholder approval, also be granted a warrant over 4,394,350 new ordinary shares at an exercise price of 4.375p pence per share which will be exercisable at any time thereafter (“the Rebbe Warrant”).