Scottish Media Group (SMG) has made a £35 million agreed takeover offer for Primesight, the London-based outdoor advertising company. The deal, which values Primesight at 320p per share, would represent SMG’s first major push beyond television and publishing.
The expansion is also Scottish Media’s first move outside Scotland and was described by a spokesperson as “a first, low-risk step, but hopefully not the last.” Scottish Media Group currently operates Scottish Television and Grampian (the Scottish ITV franchises) and the Herald , Evening Times in its newspaper interests. Last Sunday the group also launch the new Sunday Herald, edited by Andrew Jaspan (see Scottish Media To Launch New Sunday Paper).
Primesight specialises in poster advertising across London, the Midlands and the South of England and currently operates around 5,700 sites or 10% of the six-sheet sector of the outdoor advertising market. The group also offers the planning, buying and selling of advertising space at international airports.
SMG describes Primesight’s business as an ‘attractive and expanding outdoor advertising market’. Today’s offer is the culmination of discussions which begun before Christmas. Whilst the outdoor medium is new to Scottish Media, the company is confident that the acquisition will enhance SMG’s cross-media offerings to advertisers: “We are in the business of packaging audiences for advertisers; outdoor is basically the same as our current business – just a different medium,” said a spokesperson.
The offer has so far been agreed for 51.3% of Primesight’s shares including the company’s directors. Eight per cent of these, however, are held by Phillips & Drew Fund Management (PDFM) which has reserved the right to revoke its agreement if an offer 10% higher than SMG’s is made by a counter-bidder.
Andrew Flanagan, chief executive of SMG, said: “The acquisition of Primesight represents a good opportunity to expand our existing activities into an attractive, related and fast-growing advertising medium. It provides us with a growing presence outside Scotland and a significant development opportunity.”
Scottish Media Group: 0141 300 3000
