TORONTO, Jan. 11, 2012 /CNW/ - Indigo Books & Music Inc. (TSX:IDG) ("Indigo"),
Canada's largest book, gift and specialty toy retailer, announced today the
completion of the sale of all outstanding shares of Kobo Inc. ("Kobo") to
Rakuten, Inc. (JASDAQ:4755) ("Rakuten") for US$315M following the satisfaction
of all closing conditions, including approval under the Investment Canada Act.
Based on its fully diluted interest in Kobo, Indigo received US$146M from the
proceeds of the sale.
"We are enormously proud of having created Kobo and of the achievements of the
Kobo team. It is a wonderful and true Canadian business success story. We
are also pleased for Indigo and all shareholders that this sale represents
such an attractive return on our investment in Kobo," said Heather Reisman,
Founder and CEO of Indigo. Reisman continued to say that "Notwithstanding
the sale, Indigo intends to maintain a very strong relationship with Kobo,
supporting the products and eReading services our customers have come to love
and directly benefiting from the growth of the Canadian eReading market. We
are and always will be committed to providing our customers with the best
reading experiences both physically and digitally."
About Indigo Books & Music Inc.
Indigo is a publicly traded Canadian company listed on the Toronto Stock
Exchange (IDG). As the largest book, gift and specialty toy retailer in
Canada, Indigo operates in all provinces under different banners including
Indigo Books & Music; Indigo Books, Gifts, Kids; IndigoSpirit; Chapters; The
World's Biggest Bookstore; and Coles. The online channel, www.indigo.ca,
features books, eBooks, toys and gifts and hosts the award winning Indigo
Online Community. In 2004, Indigo founded the Indigo Love of Reading
Foundation, a registered charity that provides new books and education
materials to high-needs Canadian elementary schools, to address the literacy
crisis in Canada. To date the Foundation has contributed $10.5 million to
schools in need. Visit loveofreading.org for more information.
Statements contained in this news release, including Indigo's continuing
relationship with Kobo and the growth of the Canadian eReading market, that
are not historical facts, are forward-looking statements which involve risk
and uncertainties that could cause results to differ materially from those
expressed in the forward-looking statements. Key factors that could cause such
differences are discussed in Indigo's materials filed with the securities
regulatory authorities in Canada from time to time, including Indigo's latest
annual information form. Indigo disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
Janet Eger Vice President, Public Relations Indigo Books & Music Inc. 416 342
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