Commercial broadcaster, ITV, has this morning agreed to sell its 5.5% stake in French multimedia group, Thomson SA, to Citigroup Global Markets and UBS Limited, as part of its £600 million programme to sell-off non-core assets.
The 15.5 million shares held in Thomson, which were believed to be the jewel in ITV’s crown, originated from Carlton’s sale of manufacturer and distributor, Technicolor to Thomson in 2001.
It is expected that the sale will raise £162 million for ITV, which will be used to fund a £100 million revenue short-fall that has arisen due to advertisers pushing for competitive pricing deals.
Last month, non-fiction book publisher, Carlton Books, was the first to be put under the hammer and was sold as part of a management buy-out for an undisclosed sum (see ITV Starts Disposal Of Non-Core Assets With Carlton Books).
Other assets to be put on the block to reduce debts include, Carlton Screen Advertising, which sells adverts shown at cinemas, to stakes in top Premier League football teams Arsenal and Liverpool.
Chief executive, Charles Allen said: “We’re delighted to have disposed of our largest non-core asset sooner than expected at a 5 month high and reduced our borrowings by £172 million. This disposal, together with the recent sale of Carlton Books and the initial bids we’ve received for the Moving Picture Company, means that we are well advanced in disposing of our non-core assets, restructuring our balance sheet and significantly reducing our debt.”
During the first half of this year, ITV has experienced significant improvements across the board as pre-tax profits jumped up 59% to £132 million, driven by an improvement in advertising revenue which grew by 4% for the group (see Improved Advertising Revenue Drives ITV Profits Up 59%).
Related Links
