New York’s BMP Media Holdings LLC is on Track to Become Majority Owner of Artnews S.A. as a Result of PLN 144M ($38.6M) Merger
September 22, 2015, Warsaw – BMP Media Holdings LLC, the New York based media company owned by Peter M. Brant, is set to acquire approximately 60% ownership interest in Artnews S.A. for a total consideration of about $17 million including approximately $14 million paid with contribution of assets in-kind. The assets contributed by BMP Media Holdings LLC are to include a 100% ownership interest in Art in America magazine, the largest print competitor of Artnews S.A. in the USA.
Artnews S.A. extraordinary shareholders meeting held today, voted in favor for the transaction and agreed to issue 3,412,903 new shares to be paid for cash at PLN 2.69 per share by Skate Capital Corp, the specialist art industry investor and existing shareholder of Artnews S.A., and 25,531,132 new shares of Artnews S.A. to BMP Media Holdings LLC as the payment for the assets contributed by BMP Media Holdings LLC. Simultaneously with this transaction Redline Capital Management will complete a partial exit from its investment in Artnews S.A., albeit remain as minority shareholder in the company. At PLN 2.69 per share agreed for the cash component of Artnews S.A. capital increase and approved by Artnews extraordinary shareholders meeting today, the merged company is valued at PLN 144.3 million or US$ 38.6 million.
BMP Media Holding assets being sold to Artnews S.A. include 100% ownership interest in each of Art in America, The Magazine Antiques and Modern print and digital publications.
Artnews S.A. is scheduled to close on this transaction with BMP Media Holdings LLC in October, 2015 and will consolidate related art media assets as of the day of closing. Artnews S.A. will remain listed in Warsaw and will seek for an additional listing in Germany in 2016.
About Artnews S.A.
ARTNEWS S.A. is the world’s leading print and the fastest growing online art media business with its media properties including the 113 years old ARTnews and the Art & Business monthly print magazines, www.artnews.com and the www.artbiznes.pl digital properties and Skate’s art business intelligence unit (www.skatepress.com). ARTNEWS S.A. is listed at Warsaw Stock Exchange and has its primary operations in New York, USA via Artnews Ltd, the 100% owned subsidiary of ARTNEWS S.A.