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Est Media shareholders approve reorganization plan

Shareholders of Est Media unanimously approved the board's reorganization plan at an extraordinary general meeting on Friday, the company said.

The plan, to be carried out in Q2 and Q3 of 2011, aims to put the group in the black at operating level, excluding the event unit, in the second half of 2011.

The plan counts the event unit, which includes festival organizer Sziget, among the activities Est Media will retain. The unit is the main engine for the group's expansion abroad, according to the board.

The plan puts the group's program guide publisher and online media unit among activities that will be retained but must be restructured.

The group's concert manager is placed among "insignificant activities" in the plan.

Est Media's radio broadcast unit is put among activities that will not be retained. Est Media earlier sold its radio station operators.

Advertising unit EMGIndoor was put in the "not necessarily to be retained" category.

Large-scale layoffs among activities that will cease or could cease are projected in the plan.

Est Media will take a decision on boosting its stake in Sziget by the spring of 2012 under the plan. At present, Est Media holds 51% of Sziget, for which it paid about HUF 2.7 billion. Acquiring a further 24% in the company would cost Est Media an additional HUF 2.3 billion.