Content Media Corp to delist

UK- and US-based Content Media Corporation plans to delist from the London stock exchange amid a restructure of its shareholdings.

The firm, which counts a library of more than 3,200 hours of television programming among its assets, said its current share structure had become a “significant barrier” to development and growth and needed to change.

In proposals outlined today, Content’s preferred shareholders waive a £9.8m (US$15.2m) liability in return for 50% of the new capital set-up, putting them on equal footing with ordinary shareholders.

The proposals would also see Content delist from the Alternative Investment Market and return to private status, as directors have decreed costs related to the stock exchange “outweigh the benefits.”

This is all dependent on shareholder approval at a meeting on July 5. Should the move go ahead, small stakeholders would have the chance to exit at no cost.

“For some time the company and its shareholders have sought a solution to the company’s share structure which we believe has proven an obstacle to the growth of the company’s business and overall equity value,” said Content chairman Huw Davies. “The directors are pleased to announce this solution which we believe is good news for shareholders and for the company as a whole.”

“We believe these transactions will provide the company with a far better opportunity to grow the company’s business and we look forward to the prospect of executing on any growth opportunities that arise in the future,” added CEO John Schmidt.

Content’s share price plunged 40% this morning to 42p, giving the firm a market capitalisation of £742,647. Shareholders include Syntek Media, Kerry McCluggage and Jeff Sagansky, who last year increased his stake in the business last year and has since gone on to launch a multimillion-dollar media investment vehicle called Global Eagle.