UBC Media has signed a heads of term with 7digital for a proposed reverse takeover.
The company is looking to create a new publicly listed company by combining the broadcast assets of UBC, including its investment in Audioboo, with those of 7digital.
7digital is a leading supplier of digital music services with a library of 25m tracks.
‘Both UBC and 7digital believe that the growth of digital music services is increasingly linked to the growth of listening to radio online and on mobile, creating a need for hybrid services which incorporate both radio listening, curated playlists and on demand music,’ UBC said in a statement.
UBC has signed non-binding heads of terms with One Delta to buy the entire issued and to be issued share capital of Audioboo. One Delta has raised £3.48m through the issue of new ordinary shares.
Simon Cole, Chief Executive of UBC said: ‘Our aim is to create a new public company via 7digital which will be perfectly placed to exploit the rapidly developing market for online and mobile music services. The evidence is that the growth in this market will be in curated services which consolidate music and radio in one place and our new company will be perfectly placed here.
‘Our strategic investment in Audioboo compliments this well and I’m pleased that today we have found a way to both finance Audioboo’s future at a good valuation and secure value for our shareholders in any future growth.’