Flextech Buying 20% Stake In STV/STV Takes On HTV Stake

Flextech has announced today that it is taking a 20% stake in Scottish Television; this will take the form of £28m in cash plus the transfer of Flextech’s 20% holding in HTV to STV. Flextech has also agreed to commission STV to produce programming for the next three years, and has licensed the rights to STV’s programming library.

Flextech, which has interests in 12 cable and satellite channels, is also one of the leading suppliers of branded programming to the BSkyB multi-channels package.

STV is in discussions with United Artists Communications Scotland, a subsidiary of TeleWest to develop local programming for TeleWest’s cable franchises in Scotland. STV has also reached an agreement with Hallmark Entertainment to develop and produce major films or series for television.

The alliance between Flextech and STV has the full support of STV’s main shareholder, the Mirror Group, with David Montgomery, Chief Executive taking a place on STV’s board.