Harbottle & Lewis act for Target Entertainment on Minotaur International acquisition

Media and entertainment lawyers, Harbottle & Lewis, have advised Alison Rayson's international rights business company, Target Entertainment, on its acquisition of Minotaur International from Virgin Media Television (VMtv). The deal secures a long term partnership between Target and VMtv aimed at maximising programme sales, co-production and other worldwide commercial opportunities.

Minotaur International is one of the UK's largest distributors of multi-channel programming specialising in the international distribution of drama, factual, entertainment and children's formats as well as interactive programming across all media worldwide. It has output deals with both SMG productions and VMtv. As part of the deal Target will act as the preferred worldwide distribution partner for VMtv's future commissioned content concentrating specifically on the US market. It will also continue to market SMG's current and future programming which includes hit dramas Taggart and Rebus. The deal makes Target one of the UK's largest rights management businesses.

At the same time as the acquisition Target raised funds from a combination of investments by venture capital trusts managed by Electra Quoted Management Limited and bank borrowing, as well as restructuring existing funding from its existing financial investor, Richard Thompson's Angelvoice Limited. The debt and equity finance arrangements involved a group re-organisation. Harbottle & Lewis advised the company and management on these arrangements as well as the acquisition.

Colin Howes, Head of the Company/Commercial Group, led the transaction team, assisted by Company/Commercial lawyers Tony Littner and Fiona Dixon and Louise Gordon from the Tax Group, with support from members of the firm's Television, Property, IT/IP and Employment Groups.

Jeremy Roberts, Target's Director of Legal and Commercial Affairs and Target's Rob Kirby advised on the SMG and VMtv output deals.

Colin Howes commented: "We have acted for Target and its management for the best part of ten years, having started to work with them when Target was little more than a start-up. It has been very satisfying to be part of Target's growth and we look forward to the group's continuing development.

We have acted on a number of recent deals involving sales and purchases of TV production companies including Channel 4's joint venture agreement with Emap and DCD Media's triple acquisition of September Holdings, Prospect Pictures and West Park Pictures. We have watched with interest the pattern of consolidation of the production industry, in many cases helping production company clients to identify the opportunities available to them.

Consolidation has to some extent has been driven by the new opportunities for exploitation available to producers. As the long-heralded convergence of means to deliver audio-visual content to consumers becomes reality, many producers do not have the in-house expertise to get the most out of their content. In a world where the established ways of exploiting content are undergoing radical change, companies such as Target Entertainment are well placed to deliver exponential growth to their shareholders."

Alison Rayson CEO Target Entertainment said "We have worked with Colin Howes and his team at Harbottle & Lewis for many years now. They excelled themselves in their work on the Virgin Media deal and have provided an invaluable, dedicated, quick and smooth service in this hugely important transaction for the company".

For further information, please contact Colin Howes on 020 7667 5000 or email colin.howes@harbottle.com

[Ends]

30/07/07

Note for Editors

Harbottle & Lewis LLP
Harbottle & Lewis provides specialist advice to the media and entertainment industries. It is consistently recognised as a leading firm in these areas by independent sources.

Firm overview: The firm's work encompasses all areas of media and entertainment, including film, television, broadcasting, sport, music, publishing, advertising fashion and theatre and remains unique in having expertise right across these sectors.

We provide a complete range of commercial advice to our clients, including: buying and selling businesses and companies, joint ventures, finance, capital markets, commercial disputes, property, employment, immigration and tax. Other specialist legal areas include, sponsorship, intellectual property, legal issues relating to media, including defamation, advertising, brand protection, data protection, privacy, art and gaming and gambling as well as private client and matrimonial work. The firm's expertise in other areas such as aviation and charities is also widely recognised.

Much of our work involves the technology, new media and telecoms industries and we have done ground-breaking work in connection with the digital exploitation of content and e-commerce generally. Specialist knowledge and understanding of the entertainment industry and related IP issues enables the firm to identify and deal with the key issues at an early stage, and then negotiate and provide commercially sound legal advice from a position of strength.

Recent work:
In 2006/2007 we have advised on a number of significant deals including:

Sale of TV production companies Tiger Aspect to IMG Media and Ricochet to Shed Productions
Acquisition of Prospect Pictures, September Films and West Park Pictures by DCD Media
Joint venture agreement between Channel 4 and Emap plc
Acquisition of Hed Kandi by Ministry of Sound
Virgin Active acquisition of Holmes Place
Financing and acquisitions of development houses by SCi/Eidos and Take 2
Acquisitions of Index Books by Penguin and Virgin Books by Random House

Issued by: Caroline Renton, Marketing Communications Manager
E-mail: caroline.renton@harbottle.com
Telephone: 020 7667 5231