Swiss investment group to invest HUF 1 bln in Est Media
Swiss investment group Global Emerging Markets Limited (GEM) will invest HUF 1 billion into Hungarian listed media company Est Media over the next three years and will be authorized to subscribe 3 million Est Media shares within five years at an issue price of HUF 280 per share, Est Media said on Tuesday.
GEM Global Yield Fund Limited and GEM Investments America LLC signed the related contract with Est Media on Tuesday. The contract should be approved by the annual meeting of the target company.
The exact timing of the investments will be decided by Est Media, and the investor will receive shares for its cash investment. The shares will be issued at 90% of the share's average closing price on the Budapest Stock Exchange in the preceding 15 days.
Est Media said the funds could support the group's refinancing endeavors on the short run, and the development of its international media operations and an eventual further geographical expansion on the medium term.
Est Media is traded in category "B" of the Budapest Stock Exchange. Its portfolio includes several print and online publications and it is the largest owner of festival organizer Sziget. With Sziget revenue consolidated, Est Media had more than HUF 8 billion revenue in 2010.
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