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Kew Media Group considers sale

Kew Media Group (KMG) has announced a strategic review that could result in the sale of the company or a merger with another party, while its chief financial officer has left the business after providing inaccurate information.

Peter Sussman

Canada-based KMG has formed a special committee of independent directors to examine strategic alternatives for the company, chaired by David Fleck and including Patrice Merrin and Maish Kagan.

This follows “expressions of interest” from a number of parties concerning potential transactions involving the company, KMG said in its announcement today.

Potential outcomes include the sale of part or all of the company, a merger or other business combination with another party, new capital initiatives or other strategic transactions.

Meanwhile, KMG has learned that certain reports provided by Geoff Webb, the company’s CFO, to the company and its senior lenders contained inaccurate information regarding working capital.

Webb has now left the company, with media and entertainment executive Michael Corrigan appointed as interim CFO.

KMG said it is conducting a “detailed review of these matters with the support of its financial and legal advisers” and is currently in discussions with its senior lenders regarding this and its short-term liquidity requirements.

Corrigan was previously senior executive VP and CFO of Metro Goldwyn Mayer (MGM). Prior to MGM, Corrigan was a senior partner in the entertainment, media and communications practice at Price Waterhouse. More recently he was at Sonar Entertainment/RHI.

David Fleck, chair of the special committee, said: “Kew is a leading content platform comprising highly coveted assets in its global portfolio of production and sales companies. The board’s goal is to maximise value in the best interests of Kew and all its stakeholders.”

Peter Sussman, executive chair, added: “Management is fully supportive of these initiatives. We remain keenly focused on running Kew’s operations.”

KMG added it “does not intend to update the market on its progress unless or until it determines that further disclosure is appropriate or necessary.”

KMG has grown its interests in an array of production companies since bursting on to the scene in early 2017 as a result of the acquisition of six prodcos in the US, Canada and the UK.

These included Bristow Global Media, Frantic Films and Content Media Corp, which have since been joined by TCB Media Rights and Sienna Films. KMG has also taken stakes in Two Rivers Media and Awesome Media & Entertainment.

With primary offices in London, LA, New York, Sydney and Toronto, KMG companies develop, produce and distribute more than 2,000 new hours of content every year, as well as manage a library of more than 14,000 hours of content.

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