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 the company.

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 TV channel.

Savaj Netopik will largely pay for the investment with a Û200 million loan at first, later paid off with the public issuing of shares.

                                   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. ;-)