Telewest Communications, the heavily indebted UK cable operator, is seeking to sell its stake in SMG, the Scottish media company.
Telewest, which is expected to imminently undergo a financial restructure (see
Telewest Debt Waiver Is On The Cards), has requested shareholder approval to divest of the 16.9% stake in SMG. There will be an extraordinary general meeting on 4 September at which shareholders will vote on the proposal.
SMG’s share price fell slightly ahead of news and was down 2Âźp at 95žp by mid-afternoon today. SMG has a market capitalisation at this stock price of around £300 million; this values Telewest’s stake at around £50 million.
Charles Burdick, newly-installed managing director of Telewest, said: “We continue to progress the available options to strengthen our financial position, and today’s circular seeks our shareholders’ permission to divest our stake in SMG over the next twelve months.”
