TALENTUM OYJ STOCK EXCHANGE RELEASE 22 JANUARY 2008 at 8.45 am
TALENTUM TO SELL MAIN PART OF TV CONTENT PRODUCTION
Talentum Oyj has today agreed on the sale of Varesvuo Partners Oy, which focuses
on TV content production. The buyer is a company established by the CapMan
Buyout VIII Fund, which is managed by CapMan Plc. Varesvuo Partners' 59% holding
in the parent company of the sub-group Oy Filmiteollisuus Fine Ab, which will be
transferred to Talentum Oyj in the form of a subsidiary. Talentum's strategy is
to focus on publishing, and the transaction now agreed will support the
implementation of that strategy. Finalization of the transaction will require
approval from the competition authorities. CapMan intends to notify the Finnish
Competition Authority of the transaction as soon as possible. In addition, this
transaction is subject to fulfilment of certain other conditions agreed upon.
The concluding of the transaction will be publicized separately.
Varesvuo Partners is engaged in tv-programme and commercial production as well
as broadcast equipment rental. The subsidiaries of Varesvuo Partners are e.g.
Moskito Television Oy, Woodpecker Film Oy, Kaivopuiston Grillifilmi Oy and the
classical music record label Ondine Oy. Talentum acquired 47.5% of the Varesvuo
Partners Group in 1997 and the remaining in 2002 and 2005. Talentum is
concentrating on publishing aimed at professionals, and TV programme production
and commercials are no longer seen as generating synergy with the core business.
The debt-free price of the corporate transaction amounts to EUR 11.0 million.
The net cash-flow from the transaction is estimated to amount to about EUR 9.4
million thus causing Talentum Group a profit of EUR 1.0 million (estimate) on
the sale for the first quarter of 2008.
The net sales of the TV content production sold (excluding the associated
companies) totalled EUR 12.1 million in January-September 2007, and the
operating profit was EUR 0.5 million. There are about 74 employees.
“Talentum's strategy is to focus on publishing for professionals. The
discontinuing of TV content production is a logical step included in this
strategy. This transaction will release capital and free up time for management
to concentrate on expanding the core business. TV content production is an
interesting field, but the general trend in the publishing sector that focuses
on professionals justifies our giving it up. I would like to thank the
management and employees of Varesvuo Partners for the years we have shared, and
I wish them success,” says Juha Blomster, the CEO of Talentum.
“The Varesvuo Partners group of companies is a pioneer in the production of
Finnish TV commercials and independent programmes. The group has a great deal of
robust expertise and creativity. When Talentum expressed its desire to divest
operations that were not part of its core business, we entered into
negotiations. We see plenty of scope for development in this field in
Scandinavia and beyond,” says Olli Liitola, senior partner at CapMan.
TALENTUM OYJ
Juha Blomster
CEO
Further information:
Juha Blomster, CEO, Talentum Oyj, telephone +358 20 442 4444 or +358 40 342 4444
Olli Liitola, senior partner, CapMan Buyout, telephone +358 207 207 506 or
+358 400 605 040
Distribution:
OMX Nordic Exchange Helsinki
Main media
Talentum offers professionals magazines, books, seminars and online services.
The media content produced by Talentum is based on strong expertise and
journalistic skills.
Talentum's media are Talouselämä, Arvopaperi, Fakta, Tekniikka & Talous,
MikroPC, Tietoviikko, Markkinointi & Mainonta, Metallitekniikka, Energia and
Mediuutiset, while in Sweden it publishes Affärsvärlden, Ny Teknik, Dagens
Teknik, Byggvärlden, Dagens Media, Lag & Avtal, Arbetarskydd and Miljörapporten.
Talentum Fakta produces information, seminars and publications for professions
in HR and tax administration in Sweden. Talentum is also the leading publisher
of a wide range of legal and professional literature and an instructor in the
legal field. Suomen Laki products are the best-known legal publications. The
Talentum Group employs about 1,000 people in Finland, Sweden, the Baltic
countries and Russia. Talentum's shares are listed on the OMX Nordic Exchange in
Helsinki.
CapMan is one of the leading alternative asset managers in the Nordic countries
and manages Nordic funds with approximately EUR 3.0 billion in total capital.
CapMan's operations are divided into four investment areas (CapMan Buyout,
Capman Technology, Capman Life Science and CapMan Real Estate). The CapMan team
comprises approximately 100 people in Helsinki, Stockholm, Copenhagen and Oslo.
Capman was established in 1989, and the company's B shares have been listed on
the Helsinki Stock Exchange since 2001.
Varesvuo Partners is a group of companies that produces full-length feature
films, post-production and equipment leasing services and classical music
recordings in addition to TV programmes and commercials. The group's best-known
companies are Moskito Television, Woodpecker Film, Crea Television and Ondine
Oy, the last-mentioned focusing on classical music. The sold group of companies
employs some 74 people. The January-September net sales of the sold group of
companies reported as Talentum's TV content production was EUR 12.1 million. The
net sales of Oy Filmiteollisuus Fine Ab, which will be transferred to Talentum
Oyj's ownership, amounted to EUR 5.1 million during the same period, and the
company employs 22 people. Talentum's stake in Filmiteollisuus is 59%, the rest
being held by the executive management.