NTL To Sell Broadcast Business For £1.27 Billion
Cable operator NTL has announced that it has entered into a definitive agreement to sell its broadcast business to a consortium led by Macquarie Communications Infrastructure Group (MCG) for a purchase price of GBP 1.27 billion.
While subject to regulatory approval, the deal is expected to be closed in the first quarter of 2005. The cable giant is currently evaluating uses for the proceeds of the sale, with possibilities including a special dividend to shareholders and/or stock repurchases.
The company is also understood to be considering using the funds for debt repayment and other general corporate purposes, although a decision on the final usage of the sale proceeds will be made after the sale is completed, taking into account tax, legal and structural considerations.
Commenting on the sale, Simon Duffy, chief executive officer of NTL said: “We are very pleased to have agreed the sale of our Broadcast division to MCG on these terms. MCG has been an excellent owner of a similar business we sold to them in Australia in 2002 and I am sure that they will prove to be an equally good owner of our UK Broadcast business. The 2002 transaction has proved to be highly beneficial to both MCG and ntl and I am confident that the transaction we are announcing today will prove to be just as successful for both parties. Going forward, this transaction will enable us to focus on continuing to grow our core cable and broadband businesses.”
NTL’s broadcast business provides tower and antenna leasing services, broadcast transmission, satellite, media, public safety communications and other network services in the UK and the Republic of Ireland. The company’s broadcast business customers include the leading UK mobile wireless operators, all major commercial television and radio broadcasters and public safety organizations such as the police, fire and ambulance services. The broadcast business has the second largest independent portfolio of wireless towers and sites available for lease in the UK.
NTL recently secured the contract to uplink ITV’s television signals to a fourth and fifth satellite transponder, giving the broadcaster more space for its planned digital channels, increased control over the broadcast of regional content and capacity for more interactive services (see NTL To Provide Multiplex Space For New ITV Channels).
NTL: 01256 752000 www.ntl.com
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