MELBOURNE – 25 November, 2005 – destra Corporation Limited (ASX:DES)
(destra) has terminated its agreements with Artist & Entertainment Group Limited (ASX:AEM) for AEM to acquire all of destra’s digital media assets.
destra will now acquire the profitable Rajon Music & Video Group.
As a result of information that has only recently been provided by AEM, destra has determined to exercise its rights to terminate the agreements. The information recently received by destra includes substantially revised AEM revenue forecasts and the elated material deterioration in profitability and cash flow.
“In light of new financial information we received from AEM, it became imperative for us to terminate the agreement.” said Mr Domenic Carosa, destra’s CEO. “We are enormously enthused by the opportunity of digital media and are committed to maximising our returns on these assets. Our digital media strategy will now be controlled and executed within destra Corporation.”
Carl Olsen, Chairman of destra, said “destra is now pursuing its alternative plan to reach its stated objective to expand on our position as market leader in the digital media industry established by our digital music properties. The pending Rajon acquisition is indicative of our focus and aspiration to achieve scale in the destra media division.
Rajon’s financial strength allows us to facilitate further investment in digital media within the destra corporate structure.”