UBC Media shares dive as new strategy announced

20th May 2014 11:19

Shares in UBC Media lost half their value on Tuesday morning after it shares began trading after suspension and the group unveiled a number of organisational changes. The multimedia content and services firm has floated audio social network business Audioboo, in which it has an 18.7% stake, via a reverse takeover by AIM-listed One Delta and a name change to Audioboom Group. UBC also confirmed it has agreed to acquire digital music service 7digital for £16.5m, which will be satisfied by the issue of new shares and a conditional placing and subscription to raise £6m. Additonally, Imagination Technologies Group, an existing shareholder in both firms, has pre-funded 7digital by way of a £1m bridging loan, which will be converted into new shares at the placing price on admission.The move comes as part of its previously announced plan to build a balanced business around its interactive assets.UBC's Chief Executive Simon Cole, said: "This transaction will create a world leading digital music and radio platform that is ideally positioned to exploit the convergence of radio and digital music services. The new business will also be well-placed to drive consolidation of the fragmented B2B digital music industry. "As we have been putting this transaction together, our joint management teams have already started winning business together and I am confident that the combination of our combined global networks in technology and media will create an opportunity on the London market for investors to benefit from the growth of this dynamic sector." The share price dropped 51.2% to 3.05p by 11:33.NR