Granada Group To Float Media Arm

Granada Group is to be split into two divisions following its merger with contract caterer Compass Group (see Sharewatch). The group’s media division will be renamed Granada Media as a result of the separation, and will float on the stock exchange later this year.

The hospitality and media divisions are to be split within 12 months and the media arm to be partly floated off with an initial public offering of up to 20% this summer. The money raised from the float will be used to finance the group’s expansion plans.

Announcing the decision today Charles Allen, chief executive of Granada, said: “Granada Media is incredibly well placed to benefit from the changes taking place in the global media market. We have a clear strategy to grow our production and broadcasting businesses, to be a key player in pay-tv and a leading player in broadband and interactive media. The IPO gives investors the opportunity to benefit from a pure media company and will enable Granada to demonstrate the hidden value in our business.”

The split will strengthen the media arm as it seeks to consolidate its interests further with bid proposals for either Carlton Communications or United News & Media. The group said today that a final decision regarding its planned bid for either group would be made when the outcome of the formal regulatory review was known (see Granada Referred To The Competition Commission). The ITC published an issues paper this week on the proposed acquisitions (see ITC Publishes Granada Mergers Issues Paper).

Granada Group: 020 7620 1620