Russian media and entertainment group ProfMedia has launched a reverse accelerated bookbuild to purchase shares in leading Russian online portal and search engine company Rambler Media. The company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange. Following the completion of the bookbuild, ProfMedia may consider de-listing Rambler from AIM, the company said.
The Rambler’s share price increased 8% to $5.10 today. The Rambler’s market capitalization is about $80 million.
In December 2006, ProfMedia acquired a 54.5% majority stake in Rambler for ca. $250 million. Now it could purchase the remaining 45.5% stake for less than $40 million.
Update: As a result of the reverse accelerated bookbuild, ProfMedia has increased its stake in Rambler Media to 75.0% by purchasing more than 3 million shares in Rambler at a price of $6.00 per share for a total value of $18.9 million. In addition, ING Bank purchased a 13.03% stake in Rambler Media and entered into a total return swap transaction with ProfMedia. ING was acting as broker and adviser to ProfMedia for the purchase of Rambler’s shares.