United News Focuses On Media Interests With Financial Services Sale

Labour peer Lord Hollick, chairman of United News & Media (UNM), yesterday announced the demerger of his group’s moneybroking and financial information businesses. This leaves UNM with only its media interests (TV, newspapers and exhibitions) to concentrate on.

The demerged company, Garban, is a global leader in money and securities broking. As a result of the announcement, UNM’s shares fell yesterday by 29p to 866p.

Hollick said: “This represents an important milestone in the pursuit of our principal goals: to dispose of non-core assets and to move forward as an international group focussed on media interests.”

UNM owns the Express newspapers and three ITV franchises: Meridian, Anglia and HTV. The Express is currently suffering a decline in circulation against a rise in sales for its mid-market rival, the Daily Mail. The loss of the Garban businesses will cut off a substantial source of income for the group.

In March this year UNM sold its United Provincial Newspapers group to venture capital group Candover for £360 million (see United Sells Northern Newspapers). UNM has also recently bought a 33% stake in LineOne, the internet service provider formed by BT and News International (see UNM Becomes Equal Partner In LineOne).

United News & Media: 0171 921 5000