Shares in online advertising firm Burst Media Corp have been suspended ahead of the completion of its takeover by video search engine provider Blinkx.
The suspension price is 31.5p. Blinkx is offering cash or shares in the bid depending on whether the investor is accredited or not. The majority of the payment will be in shares with an estimated $4.5m payable in cash. The cash bid is 25.08p a share or Blinkx is offering 0.248443 of one of its shares for each Burst share. At 141.75p for each Blinkx share the share offer values each Burst share at 35.2p.
Burst floated at 82p a share in April 2006. The quotation is expected to be cancelled on 12 May.
Blinkx hopes to use Burstís network of sites to market its video content as well as selling video advertising, which generates a higher revenue than ordinary internet advertising. The loss-making Burst business will be more focused and annual revenues will fall from $37.7m to around $33m.
The bid values Burst at £18.5m ($30m) and should be earnings enhancing for Blinkx in the year to March 2012.
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