Koovs signs £24m media deal with Hindustan Times owner

Koovs has completed its agreement for a £24m media deal with strategic partner HT Media, one of India's largest media companies and owner of the Hindustan Times, it announced on Wednesday.

The AIM-traded e-commerce firm said the agreement had been updated to be over a four-year period rather than a two-year period, as previously announced, and also in regards to the mix of shares and cash used to satisfy the deal.

It said the agreement would, in aggregate, provide Koovs with £24m of media and advertising services from HT Media.

Under the agreement, HT Media agreed to subscribe for £17.1m of new ordinary shares in Koovs - previously £16.8m - and Koovs agreed to commission further media and advertising services from HT Media for £6.9m in cash - previously £7.2m.

The net effect of the agreement would be that Koovs would acquire four £6m tranches of media from HT Media at yearly intervals over a four-year period.

It said £4.28m of each instalment would be satisfied by the issuance of new ordinary shares to HT Media, with the balance of £1.72m to be acquired by Koovs in cash.

On 21 August and under the first tranche, HT Media subscribed for 42.84m ordinary shares at 10p each, Koovs confirmed.

The subscription was conditional on admission of the subscription shares to trading on the AIM market.

“We are delighted to have concluded this deal with HT Media, one of India's most influential media companies,” said Koovs chief executive Mary Turner.

“The agreement will give us premium exposure in further building the Koovs brand and will provide us with an important platform to support our future growth in what is the world's fastest growing economy.”