UPA (Utanian Press Agency)
Release: February 28, 301 AP.
Savaj Netopik to buy third of Zeitgeist
James Angorit and Miguel Van Der Ham stood side-by-side on the podium to announce to
the assembled press, including some of Zeitgeist's own journalists, that Zeitgeist Magazine
was to be floated in the next few months, and that James Angorit's Savaj Netopik would be
buying a substantial portion of the issued shares in a multi-million pund deal, the biggest
in the Utanian media industry yet.
The magazine announced a turnover last month well below company expectations, with
circulation, 450,000 copies of the Û10 magazine a week, well-below projections. This
resulted in a significant drop in profits and a valuation of the company at 58% the projected
Û800 million. This significantly damaged Zeitgeist magazine's hopes for Zeitgeist News,
the cable and satellite channel and internet presence which was to be launched July this year
on the back of a 350 million share float. With sales and profits down, the company could not
hope to raise the money required without Publisher Van Der Ham losing his dominant share of
Enter James Angorit, multi-billionaire owner of the Savana-based manufacturing and
utility giant, Savaj Netopik. Angorit was as passionate, the pair told reporters, about the
magazine and company's commitment to "excellence in journalism". Angorit would become an equal
shareholder with Mr Van Der Ham in the new Zeitgeist Corporation, which would now have a base
of 850 million one pund shares. Mr Van Der Ham would own 300 million, as would Mr Angorit,
while the market would control 250 million shares. Angorit and Van Der Ham would maintain a
70.6% combined controlling interest, thus continuing their commitment to "Integrity,
Truthfulness and Boldness" the pair said simultaneously, and it appeared that they not only
shared a company, but a close personal bond.
Angorit's Savaj Netopik, a recent acquirer of the country's third largest ISP, Jagged
Blue, would now buy an issue of 132.4 million shares from Van Der Ham, and 167.6 million of
the public float shares. With Û132.4 million suddenly appearing in his bank account,
Van Der Ham joked that he was "choosing the wrong time to get involved in a five year venture!"
The company has projected Zeitgeist News to bring in revenues of Û300 million, and
self-sufficiency, in five years.
Angorit maintained throughout the press conference that he would leave the publishing
to Van Der Ham. "I'm no publisher, so that will remain his area. However, I will contribute to
the business management of the company, and to the development of Zeitgeist News." This was
seen as a swipe at CEO David Wembley who has failed to provide an organisation committed to
growth, say analysts. For Angorit, the deal is already sweetened: his Jagged Blue will have
100% of the data casting and internet business requirements, making millions of punds for the
previously struggling ISP.
"I think it would be fair to say that many of you understand why Jagged Blue was such a
good buy for me", Angorit joked with the Press. "And the surprises have not stopped there."
Angorit is renowned as a very astute businessman, a generous boss, and a man of substantial
flare and keen intellect. His Jagged Blue purchase for Û13 million was widely questioned
by business analysts, but is proving far more astute than previously thought with the Zeitgeist
deal now known.
Angorit's introduction to the Zeitgeist empire will significantly assuage investor
doubts about the massive share issue, and the massive investment into a cable and Satellite
Savaj Netopik will largely pay for the investment with a Û200 million loan at
first, later paid off with the public issuing of shares.
ZEITGEIST MAGAZINE FINANCIAL REPORT
Û '000s (300ap)
Revenues from magazine sales 208,000
Revenues from advertising 195,800
Other revenues, interest earnings 6,400
Total expenditure (365,600)
incl. debt servicing
Profit after extraordinaries 44,600
As a percentage of revenues 10.9%
BALANCE SHEET (31 Dec, 300 AP)
Current Assets 23,200
Fixed assets 242,950
Total debt, fixed interest loans 87,490
Other liabilities 47,300
Nett value 131,360
Return on assets 16.8%
Return on equity 34.0%
Company valuation: 460,000
EPS (per Û1 share) 9.7c/share
Shareholder #1 (Van Der Ham) 432,400,000 shares
Employee shares 27,600,000 shares
©UPA, 301 AP.
©Mike Ham, 2001. All rights reserved. No reproduction without, at least, tacit approval. ;-)