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
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
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