Scottish Radio Launches £116m Hostile Bid For Border TV

Scottish Radio Holdings (SRH) has this morning unveiled a £116 million takeover bid for radio and ITV franchise company, Border Television. The official announcement follows a surge in Border’s shares at the end of last week, on the back of rumours that SRH was planning the move (see Border Stock Soars On Scottish Radio Rumours).

Scottish Radio has businesses spanning radio, newspapers and outdoor advertising and is seeking to strengthen its base in a media world which is fast-consolidating. Border TV holds the ITV franchise covering the north-west of England and southern Scotland; the group also operates a number of Century-branded radio stations across the North and Midlands.

SRH’s cash offer values Border’s stock at around £10.25 per share. By 10:30 this morning, Border’s shares had soared to £10.75 on the back of SRH’s advance; this represents a hike of 172˝p on the group’s closing price yesterday. Scottish Radio is also proposing to offer ten new SRH shares for every 17 Border shares, valuing Border at £10.76 per share. This paper offer represents a 31% premium over Border’s closing price on 9 March, before the rumour-fuelled surge.

However, the bid is being viewed as hostile by Border Television which at this stage is making ‘no comment’ either way. A further statement may be released by the group during the course of today. Border rejected a similar takeover approach from Scottish Radio in August 1998, saying that it wished to remain an independent company (see Border TV Rebuffs Takeover Approach).

SRH’s chief executive officer, Richard Findlay, says: “SRH believes Border needs to be part of a large and powerful media group to develop its media assets and to enhance shareholder value. We have attempted to establish a constructive dialogue with the directors of Border on a merger [and] it remains our wish to enter into a meaningful discussion with the directors of Border.”

Scottish Radio Holdings: 0141 306 2242 Border Television: 01228 525 101