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10/05/2004
SMG to sell GMTV stake to ITV for £31m
The Scottish Media Group (SMG), owner of the Scottish Television and Grampian Television ITV franchises, has agreed the sale of its 25% share in GMTV to ITV plc for £31 million.
The sale is subject to regulatory approval and the rights of the other GMTV shareholder, Disney. As ITV plc has a 16.9% holding in SMG, the sale is also subject to SMG shareholder approval as a related party transaction.
Commenting on today’s announcement, Andrew Flanagan, Chief Executive of SMG, said: "The ITV merger created a 50% shareholder in GMTV and we don’t want to have a minority interest in someone else’s media business. It is clearly in our shareholders’ interests to sell the stake at an attractive price. Our focus is on driving and capitalising on the operational performance of our wholly-owned media assets as the advertising markets continue to improve."
SMG’s original 20% shareholding was acquired in 1991 and increased to 25% in 2000.
Since that time, changes in the structure of GMTV’s shareholder base have resulted in SMG’s board taking the view that this investment could no longer be regarded as strategic and that the interests of SMG’s shareholders would be best served by disposing of the stake.
The proceeds of the sale will be used by SMG to reduce debt.
(GB)
The sale is subject to regulatory approval and the rights of the other GMTV shareholder, Disney. As ITV plc has a 16.9% holding in SMG, the sale is also subject to SMG shareholder approval as a related party transaction.
Commenting on today’s announcement, Andrew Flanagan, Chief Executive of SMG, said: "The ITV merger created a 50% shareholder in GMTV and we don’t want to have a minority interest in someone else’s media business. It is clearly in our shareholders’ interests to sell the stake at an attractive price. Our focus is on driving and capitalising on the operational performance of our wholly-owned media assets as the advertising markets continue to improve."
SMG’s original 20% shareholding was acquired in 1991 and increased to 25% in 2000.
Since that time, changes in the structure of GMTV’s shareholder base have resulted in SMG’s board taking the view that this investment could no longer be regarded as strategic and that the interests of SMG’s shareholders would be best served by disposing of the stake.
The proceeds of the sale will be used by SMG to reduce debt.
(GB)
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