The TV 2 Board decided today to agree to the merger between the company Peak Broadcast Systems Ltd. (Peak at http://www.peak-tv.com ) and RT-SET Ltd. (http://www.rtset.com ). The headquarter of this company is located in New York and listed on the Neuer Markt (Ticker code: RTZ). The name of new company will be Rtpeak. The company will be a key player on the international market for development of television and web graphics.
The shareholders of Peak will receive one RT-SET Ltd. share per 2.75 Peak shares. RT-SET will issue a number of shares equalling 36.6% of shares outstanding at the closing date to the Peak shareholders. The Peak shareholders will following the conclusion of an issue have a shareholder stake in RT-SET Ltd. of 26.7%. Closing price for RT-SET Ltd. was yesterday EUR 20.50 per share. A market capitalisation of the merged company will with this be approx. NOK 2.2 bn. The TV 2 Invest ownership stake of 11.5% will constitute approx. NOK 250 million.
The agreement is dependent upon satisfactory due diligence. The transaction is expected concluded during 3rd Quarter 2000.
The accounting implications of this transaction in the TV 2 accounts will be clear when the transaction is finally concluded.
Peak Broadcast Systems Ltd. is 43.1% owned by TV 2 Invest. TV 2 AS owns 100% of TV 2 Invest. Schibsted has an ownership stake in TV 2 of 33.3%.