It's all change at advertising and media company RedHot Media. In fact, shareholders could shortly have interests in three quoted companies: two listed on the Alternative Investment Market (Aim) and one in Malaysia. This is because all of RedHot's operating subsidiaries are being merged with PUC Founder. PUC sells biometric security products but is a small part of the much bigger Chinese Founder Group. It, in turn, was set up by Peking University in 1986 and currently has close to 30,000 employees.
The game plan seems to be that, post merger, RedHot will own 68 per cent of the enlarged PUC vehicle. But it will also be undertaking its own ventures to be announced, it seems, at the annual meeting on 18 July. At the same time, brokers reckon that RedHot's small financial services advertising business, Ausscar, will be beefed up by PUC - and then be re-launched on Aim.
Ahead of the merger with PUC there's will be a one-for-10 bonus issue of shares and a further scrip issue equivalent to 20 per cent of the enlarged share capital before the end of December.
REDHOT MEDIA (RHM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 38p | MARKET VALUE: | £14.2m | |
| TOUCH: | 38-38p | 12-MONTH HIGH: | 62.5p | LOW: 24.25p |
| DIVIDEND YIELD: | nil | PE RATIO: | 7 | |
| NET ASSET VALUE: | 135sen* | NET DEBT: | 2% | |
| Year to 31 Dec | Turnover (RMm) | Pre-tax profit (RMm) | Earnings per share (Sen) | Dividend per share (Sen) |
|---|---|---|---|---|
| 2007 | 19.3 | 2.29 | 6.8 | nil |
| 2008 | 22.4 | 3.94 | 10.7 | nil |
| 2009 | 26.2 | 4.70 | 12.5 | nil |
| 2010 | 44.3 | 9.18 | 25.3 | nil |
| 2011 | 58.9 | 10.44 | 28.2 | nil |
| % change | +33 | +14 | +11 | - |
Aim: Advertising *Includes intangible assets of RM33.8m, or 91sen a share £1=RM4.94 | ||||
