NTL Incorporated (NASDAQ: NTLI; EASDAQ: NTLI) announced today that a wholly-owned subsidiary, Premium TV Limited (‘NTL’), has entered into a media partnership with Newcastle United PLC. Under the agreement, NTL will make an investment in Newcastle United for an additional equity stake and will also receive certain marketing and sponsorship rights associated with the football club.
In conjunction with the agreement, NTL will invest ú5 million for an equity stake of 3.6 %, thereby increasing NTL’s stake in Newcastle United to 9.9%. In addition, NTL will enter into a ú25 million Loan Agreement with Newcastle United. This loan will be repaid after five years by the issue of Newcastle United ordinary shares to NTL (at an equivalent issue price of 155 pence per share), representing an additional 9.99% of Newcastle United’s fully diluted ordinary share capital. In December 1998, NTL made a strategic investment in the club by purchasing 9 million shares, representing 6.3% of issued Ordinary Share capital of Newcastle United, from a majority Newcastle United shareholder at a price of 111.7 pence per share.
Under the agreement, NTL will obtain various marketing and other rights associated with Newcastle United. For a period of five years, such rights will give NTL the opportunity to operate any Newcastle United television channel and to provide Internet and e-commerce services associated with the club, as well as the designation of NTL as the main sponsor of the club. The agreement does not cover rights required to be negotiated collectively by the FA Premier League. NTL will also be able to act as the exclusive media agent for Newcastle United for advertising and publishing and other commercial rights, for which NTL will receive a share of certain new media revenues.
The media partnership is conditional on the approval of Newcastle United PLC shareholders.
more on ntl:
– ntl uses world-leading technology to deliver telephone, tv, internet and interactive services to UK homes and businesses.
– 22 million homes watch ITV, C4 and C5 thanks to ntl’s transmission network: 5.6 million of those homes are within its ‘speed of light’ fibre-optic broadband network.
– ntl helped pioneer digital tv and is involved in digital terrestrial, cable and satellite and launched the UK’s first interactive service in March 1999.
– ntl’s national network carries such names as Virgin, Orange and AT&T.
– with businesses in France, Australia and Ireland, ntl’s headquarters is in Hook, Hampshire, UK. It has over 10,000 associates and is listed on NASDAQ.
– in July 1999, ntl announced its intention to acquire the consumer operations of Cable and Wireless Communications.
– To get the bigger picture, or find out more about one of our business areas, visit our website at www.ntl.com. The press office page invites you to register for a press pass to receive up to the minute information and images.
for further information please contact:
In the US:
John Gregg, Senior Vice President – Chief Financial Officer;
Bret Richter – Corporate Development; or Richard J. Lubasch, Executive Vice President General Counsel at +44 1 212 906 8440,
or via email at investor_relations@ntli.com
In the UK:
Alison Smith, Head of Group Communications – tel: +44 1256 752662
Will Robson, Group PR Manager- tel: +44 1256 752661
Paula Averley, Media Relations Manager – tel: +44 1256 751570