Production house Dori Media, which specialises in producing Latino soap operas and telenovellas, is to delist from London’s AIM share market. It held an IPO in March 2005 and raised just over £3 million and a market valuation at the time of £22 million (at £1.18 a share). The shares have since fallen back. The company says it intends to raise further capital.
Dori, which also owns a pair of cable channels on ‘HOT’ in Israel, was founded by Yair Dori and has its headquarters in Tel Aviv and Buenos Aires. Its full year 2010 revenues were $47 million (down from 2009’s $48.7m) and a gross profit of $11.4 million ($15.4m) resulting in an operating loss of $3.2 million (profit 2009 of $1.6m).
In an April 14th statement, Dori said there has been very limited trading in its stock, and the costs of maintaining the London listing “are disproportionately high when compared to the benefits”. Moreover, the valuation on AIM “does not properly reflect its potential and by delisting it will be able to negotiate better terms as and when it wishes to raise further capital.”
The shares will be cancelled on May 20th.
Dori has also received a proposed tender offer for up to 2.7 million shares at 50p per share, although board members holding about 75 per cent of the company’s stock have indicated they do not intend to sell.