Corporate & Commercial

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Investment: Datasat report

Practice group: Corporate & commercial legal services

07 May 2008

We acted for Datasat Communications Limited, a satellite communications company, in its investment in Beaufort Plc to fund its purchase of the European subsidiary of DTS, an American cinema company.

For strategic and regulatory reasons, the acquisition had to be done through a UK company and a US subsidiary. The investment vehicle used was an Alternative Investment Market (AIM) listed company, and the seller, DTS, is a NASDAQ listed company in the US.

This was a strategic investment for our client, who is currently working with a consortium towards the delivery of digital cinema on a worldwide basis. The purchase by Beaufort of DTS Europe gives Datasat not only wide expertise at a management level, but also infiltration into markets across Europe, and good relations with suppliers and cinemas in America.

This was a particularly complex transaction due to the structuring and US regulatory requirements, as well as the requirements of the London-based AIM market. The exact terms of the investment also required substantial negotiations, as the initial transaction went from a proposed company sale to an investment via a public limited company. The transaction also involved co-ordinating not only different pools of investors, but also the US acquisition and at all times protecting our client interests in the short and long term.

The protracted negotiations with DTS in the States meant the deal had to be significantly restructured, and our advice had to be tailored to the specific needs of the wider transaction.

The team:
Victoria Holland, senior associate, corporate & commercial
Sophie Kernthaler, associate, corporate & commercial