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Telecommunications Seven to take 33 percent of engin for $26m
Telecommunications Seven to take 33 percent of engin for $26m | Seven to take 33 percent of engin for $26m |
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| by Stuart Corner | |
| Thursday, 14 September 2006 | |
  
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Seven Network will invest $26 million in Engin at an average share price of 22 cents for 119 million fully paid ordinary shares. It has already purchased an initial tranche of 10 million shares. Engin intends to "draw on Seven's content and digital media experience to create an important broadband gateway that delivers competitive services to all Australians." "Seven is rapidly developing its presence in new communications technologies and consumer services, building on our strengths in media. Seven Network director, Ryan Stokes, said that Seven was "developing a fully integrated media company across all forms of communications" and engin would provide "a strong platform for our development in digital media." Engin intends to promote its products and services through Seven Network and its other properties, Pacific Magazines and Yahoo!7 and "develop new services to combine across mobile and other consumer devices and acquire IP content services to be bundled with engin's voice products." Seven claims to be the largest television company in Australia reaching 74 per cent of the market through its owned and operated television stations, and 98 percent of Australians through its owned and operated stations and affiliate agreements. Pacific Magazines - is the second largest magazine company in Australia with a 21 percent share of magazine distribution. Engin shareholders will be asked to approve the appointment of three new directors from Seven -Ryan Stokes, Bruce McWilliam and Rohan Lund as well as the engin CEO, Ilkka Tales. The new Board will comprise seven members including Will Jephcott (chairman), Chris Shaw and Neil Gamble from engin. engin today, 14 September, reported revenues of $8.6m for the year to 30 June 2006, up from $1.54m last year, with cash reserves of $3.0m, slightly higher than a year ago. However, it raised $9.4m during the year so has been burning cash a goodly rate. The company claims that its revenue growth "continues to set engin apart as the fastest growing broadband telephony company in Australia." engin's paying subscriber numbers have grown from 5,800 at June 2005 to 39,000 as at June 2006. {moscomment} |
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