Seven Network to take 33pc stake in Engin16:16, Thursday, 14...

Seven Network to take 33pc stake in Engin
16:16, Thursday, 14 September 2006

Sydney - Thursday - Sep 14: (RWE Australian Business News) -
Seven Network Ltd (ASX code: SEV) and internet phone company Engin Ltd
(ASX code: ENG) today announced plans for a strategic partnership.
A key element in this partnership is Seven's commitment to
acquire a 33 per cent shareholding in Engin through a placement.
Under the agreement, Seven will invest $26 million in Engin at
an average price of 22c for 119 million shares.
The initial tranche of 10 million shares has been completed.
The balance of 109 million shares will be placed subject to
shareholder approval at an extraordinary general meeting.
Engin chairman Mr Will Jephcott said: "This proposal is a
watershed event for Engin and a landmark change for communications in
Australia.
"This strategic relationship will enable Engin to strengthen its
market-leading internet telephony business and draws on Seven's content
and digital media experience to create an important broadband gateway
that delivers competitive services to all Australians."

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Shareholders will be asked to approve the appointment of three
new directors from Seven - Mr Ryan Stokes, Mr Bruce McWilliam and Mr
Rohan Lund, as well as the Engin CEO, Mr Ilkka Tales.
The new board will comprise seven members including Mr Will
Jephcott (chairman), Mr Chris Shaw and Mr Neil Gamble from Engin.
Mr Ryan Stokes, a director of Seven, said: "Seven is rapidly
developing its presence in new communications technologies and consumer
services, building on our strengths in media.
"We are developing a fully integrated media company across all
forms of communications and Engin provides a strong platform for our
development in digital media.
"Engin is the market leader in internet telephony in Australia.
"With its scalable customer platform and retail distribution
network, Engin is well-positioned to take advantage of the continuing
rapid growth of broadband and the bundling of digital consumer services
with its telephony services."
ENDS