re: $$60 mill woolworths contract At 3.2 MUL is a definate rebound, with another announcement it will be back to 4 cents, Im in.....
Especially with Multiemedia (MUL) set to expand relationship with Woolworths
(RWE Australian Business News) - Multiemedia Ltd today said it was "substantially advanced" in taking a majority stake in Airworks Media Pty Ltd.
Other major shareholders will include Technical Software Services Pty Ltd, a provider of media management software, and Sales Success Australia Pty Ltd, a sales and marketing company.
The transaction will be completed this month.
Airworks Media holds the five-year exclusive agreement with Woolworths Ltd for in-store advertising content to 720 stores.
Multiemedia supplies the TWO-WAY SATELLITE infrastructure for advertising content delivery to these stores.
This acquisition is in line with Multiemedia's strategy to deliver complete solutions to large corporates and SMEs via its two-way broadband satellite network.
It also accords with Multiemedia's strategic preference to engage in direct customer relationships.
The business will generate revenues of more than $60 million over the life of the contract and be earnings per share positive for Multiemedia shareholders in its first year.
This revenue is in addition to that generated via Multiemedia's existing supply agreement with Woolworths.
Multiemedia's investment will be in the order of $2 million and the new Sydney-based Airworks Board will be chaired by Multimedia's chairman, Mr John Walker.
Woolworths today approved the change in control of Airworks Media, paving the way for imminent settlement.
MUL
multiemedia limited
