INTERNATIONAL FAMILY ENTERTAINMENT AGREES TO CONSOLIDATE THE FAMILY CHANNEL UK INTO FLEXTECH PLC.
This transaction, which includes the television production studio in Maidstone, England, is expected to close by the end of April 1996. IFE will receive consideration for the transaction consisting of approximately $4.6 million in cash and 5,792,008 shares of Flextech's convertible, redeemable non-voting stock. The same number of shares of Flextech's voting common stock has a value of approximately $46.1 million, based on its closing price per share yesterday on the London Stock Exchange. After May 1997, these non-voting shares may be put, at IFE's option, to Flextech's majority owner, Tele-Communications International, Inc., which has the option of redeeming them for cash at the then-market value of the same number of shares of Flextech's voting common stock. If the shares are not redeemed for cash, IFE has the option of either converting 50% of the shares on a share-for-share basis into Flextech's voting common stock and 50% of the shares into common stock of the same value of Tele-Communications International, or converting 100% of the shares into common stock of the same value of Tele-Communications International. Consummation of this transaction is subject to the approval of Flextech's shareholders and the Board of Directors of Tele-Communications International, Inc.
Mr. Robertson commented, "After careful consideration, we pursued this transaction to take advantage of Flextech's established presence in Europe, including its substantial operations in the United Kingdom. The network will continue to bear the name, "The Family Channel", pursuant to a license agreement with IFE. Further, by consolidating the network into the group of 13 networks with which Flextech is involved, we expect that The Family Channel (UK) will have a significantly greater opportunity to increase its carriage than as an independent network. In addition to greater leverage with satellite and cable operators, Flextech's critical mass of programming networks enables it to cross-promote channels and enjoy economies of scale. Our confidence in the potential benefits of this combination is reflected by our accepting equity instead of cash for the majority of the consideration to be received by IFE in this transaction."
International Family Entertainment, Inc. owns and operates an array of entertainment assets. Four cable television networks, The Family Channel, The Family Channel (UK), The Family Channel De Las Americas and FIT TV, provide high-quality entertainment and information programming that emphasize traditional values and can be enjoyed by the entire family. MTM Entertainment, Inc. is engaged in the development, production and distribution of television series and other programs throughout the world. The Family Channel is one of the nation's largest advertiser-supported basic cable television networks, reaching approximately 99% of all cable households and 67% of all television households.
CONTACT: International Family Entertainment, Inc., Virginia Beach
David R. Humphrey, 804/459-6110
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|Date:||Mar 20, 1996|
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