Alfacam Group has received extension of the WCO and continues negotiations with Hinduja Group
Status of negotiations with Hinduja Group
Following a financial, tax, legal and commercial due diligence, Hinduja Group has reiterated the intention to proceed with negotiations on its contemplated investment in Alfacam Group, along the lines of the Memorandum of Understanding signed on 11 December 2012. Alfacam Group and Hinduja Group will continue negotiations with the objective to reach an agreement as early as possible.
The contemplated transaction will result in a significant controlling stake for Hinduja Group which may result in dilution of the existing shareholders. The exact details of the transaction structure are subject to further discussion and agreement between the parties, respecting all regulations and stakeholder interests. Alfacam will communicate the exact details as soon as full agreement between the parties has been reached in respect thereof. The contemplated transaction will strengthen the balance sheet of the Company and secure its financial and commercial future. Banks and Gigarant are willing to grant an extension of the standstill until the end of February in order to allow Alfacam to reach a binding agreement with Hinduja. This standstill will be subject to Alfacam and Hinduja meeting specific deadlines in the course of the negotiations.
The Board of Directors of Alfacam Group is pleased with the ongoing and constructive discussions with Hinduja Group. The Board is looking forward to reaching an agreement with Hinduja Group as early as possible.
In March Alfacam will publish its annual figures. The turnover for H2 2012 will be slightly higher than 21,5 Mio euro, compared to a turnover of around 20 Mio in H2 2011. The fourth quarter turnover was 7 Mio euro, compared to 10 Mio euro in 2011, a decline of more than 30%, reflecting the ongoing loss of commercial revenue under the present WCO conditions.
About Alfacam Group
Alfacam Group [EURONEXT Brussels: ALFA] groups de activities from Alfacam, EuroLinX and Euro1080 (EUROCAM MEDIA & FILM CENTER & HD1).
Alfacam primarily delivers services to TV stations and production houses. The company has the largest HD OB fleet in Europe. More information on www.alfacam.com.
Eurolinx is the sister company of Alfacam, offering wireless services to TV stations and production houses. More information on www.alfacam.com/wireless.
Eurocam Media Center is a complex of 16 studio’s dedicated to television, film and event productions and a « business center ». More information on www.eurocammediacenter.be.
Hinduja Group companies
Ashok Leyland Ltd
Ashok Leyland Defence
Gulf Oil Corporation Ltd
Gulf Oil International
IndusInd Bank Ltd
Hinduja Foundries Ltd
Hinduja Global Solutions Ltd.
Hinduja National Hospital and Medical Research Centre
Hinduja Bank (Switzerland) Ltd