STV Sells Stakes In HTV And ITN

Scottish Television has this morning announced that it is selling its 20% stake in HTV and its 5% holding in Independent Television News to United News & Media in a move which is aimed at freeing up money for further acquisitions.

United News & Media, which has been looking to buy a stake in HTV for some time *Carlton And United Race For HTV, has paid £73.7m (or 420p per share) for STV’s stake in the Welsh and West Country broadcaster and £5.1m for the 20,000 ITN shares.

Gary Hughes, finance director at STV, told Newsline that the company had bought the HTV stake when it was advantageous to do so under the Broadcasting Act 1990 but now, with more relaxed cross-ownership rules becoming law next week, STV believes it can invest the money more profitably in other areas of the media. STV is believed to have set its sights on local media such as radio and regional press.

Mr Hughes also said that the ITN stake was a non-earner and its sale would free up over £4m to aid in its expansion plans.

STV was bolstered in its takeover ambitions last Friday when the Independent Television Commission approved its acquisition of Caledonian *STV Gets Approval For Caledonian Takeover, which publishes local newspapers in the STV area.

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