Scottish Media Group (SMG) has announced that it has made a £31 million (80p per share) takeover offer for video publishing group VCI. VCI’s publishing interests include videos for Thomas The Tank Engine and Manchester United.
Shares in SMG, which owns Scottish Television, rose by 32p to 651p; VCI shares were up 29p to 78.5p.
Chief executive of SMG, Andrew Flanagan, also remarked that the company was still in decision over the future of its 20% stake in national breakfast broadcaster, GMTV.
The future ownership structure of GMTV will probably be influenced by the results of the ITC’s restructuring of licence tariffs. GMTV currently pays £50 million per year to the ITC for its licence, but it is wanting to reduce this payment otherwise losses will be incurred at the station.
The Guardian Media Group, which holds a 15% stake in GMTV, is also understood to be expecting an ownership review following the ITC’s licence tariff review. The ITC’s consultation process ends on 18 September.
The announcement comes as SMG reports pre-tax profits before exceptional items up 27% to £23.5 million.
Scottish Media Group: 0141 300 3000
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