Telenovola producer Dori Media Group Ltd. (AIM:DMG) has called a general shareholders meeting for May 12 to approve the delisting of the company from London’s Alternative Investment Market (AIM). The company held its IPO six years ago, and the proposed delisting will further reduce the Israeli presence on the AIM.
Dori Media published weak financials, and the company's share price has fallen to ₤0.40, giving a market cap of ₤11 million. The share price has fallen 43% in the past year, and 66% from its IPO price of ₤1.18 per share. The share price peaked at ₤1.91, 62% above the IPO price.
Yair Dori founded Dori Media 15 years ago. Yair Dori eventually sold his stake in the company and ceased to hold any managerial position in it. The company is now controlled by Mapal Communications Ltd., owned by Tami Mozes-Borovich (the wife of El Al Israel Airlines Ltd. (TASE: ELAL) controlling shareholder Israel Borovich), who serves as Dori Media chairwoman, and by president and CEO Nadav Palti.
Dori Media shareholder Pujo Zabludowicz will be a big loser, after investing $3 million to buy 6.6% of company at ₤1 per share 18 months ago. He is set to lose 60% of his investment.
Dori Media posted $47 million revenue in 2010, 3% less than in 2009. It swung to an operating loss of $3.2 million from an operating profit of $1.6 million, and its net loss rose to $4.6 million from $1.4 million. Dori Media posted a net profit of $3.8 million in 2008, and had $1.8 million in cash at the end of 2010.
Dori Media's board of directors said that the cost of maintaining the listing on the AIM were "disproportionately high when compared to the benefits and the board of directors considers that these funds could be better utilized in running the business." It added that, like many AIM-listed companies, Dori Media suffered from a lack of liquidity. Finally, it said that the market cap does not properly reflect the company's potential
Mapal Communications has made an offer to purchase 2.7 million Dori Media shares at ₤0.50 per share, 25% above Friday's close, 58% below its IPO price, and half the price at which Zabludowicz bought his stake.
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2011
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