CIA report confirms a pounds 2m plus pay-out to Kenyon for IDK stake

By ANNA GRIFFITHS, campaignlive.co.uk, Friday, 30 May 1997 12:00AM

Tony Kenyon, the chief executive of the Negotiation Centre, received an initial payment of about pounds 1.8 million when his 24.5 per cent stake in IDK Media was acquired by the CIA Group, it was revealed this week.

Tony Kenyon, the chief executive of the Negotiation Centre,

received an initial payment of about pounds 1.8 million when his 24.5

per cent stake in IDK Media was acquired by the CIA Group, it was

revealed this week.



Kenyon sold his IDK shares to CIA in February this year and, according

to a CIA shareholder prospectus issued this week, he was paid an initial

pounds 1.761 million, settled in cash on completion.



A further cash sum of between pounds 300,000 and pounds 500,000 is still

payable to Kenyon depending on the future level of business conducted by

IDK up to the end of March 1998. A deferred payment of pounds 250,000 is

payable before the end of March 1999.



According to the document, David Reich, who was appointed chief

executive of the CIA Group earlier this year, was given options over one

million ordinary shares in the company as part of his package. CIA’s

shares were running at around 160 pence this week.



The prospectus - issued as CIA made a further acquisition in Europe (see

story, page 9) - also reveals a twist to CIA Medianetwork’s trading

dispute last year with the ITV sales houses, Laser Sales and TSMS.



Although CIA paid off debts of pounds 1.9 million to Laser, the agency

has been forced to pay in advance an additional pounds 1.2 million for

future trading as part of its settlement with TSMS.



The two parties were able to reach an agreement last year which did not

include a cash repayment of CIA’s debt.



However, the prospectus admits: ’As part of the settlement, CIA

Medianetwork agreed to enter into contracts in the ordinary course of

its business with certain broadcasters in relation to clients’ airtime

in 1997 and 1998 and has made a pre-payment of pounds 1,225,000 on

account of the aggregate amount becoming due to TV contractors

thereunder.’



The prospectus insists that ’the (CIA Group) board is confident that CIA

Medianetwork UK will fulfil its ongoing commitments in this respect and

that the pre-payment will be refunded.’



This article was first published on campaignlive.co.uk

X

You must log in to use Clip & Save

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Campaign Jobs