UTV share-holders to make £55m

Shareholders are expected to make £55 million following the sale of UTV to ITV, a company statement said.
By The Newsroom
Published 14th Jan 2016, 19:03 BST
Updated 14th Jan 2016, 19:08 BST
Sale to ITV to proceedSale to ITV to proceed
Sale to ITV to proceed

UTV Media has agreed to transfer its television assets for £100m by the end of March.

The sale excludes its radio stations, which include UTV Radio GB and UTV Radio Ireland, and its digital media businesses.

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A UTV update said: “The board proposes to return approximately £55m (c. 57p per share) of cash to shareholders as soon as possible after completion of the sale.” Approval from shareholders was obtained on December 1.

“The modest level of financial gearing and strong cash flow generation of the business will provide shareholders with an attractive combination of dividend and capital growth over the coming years,” said chairman Richard Huntingford.

The Belfast-based firm was the first commercial television channel in Ireland when it launched as part of the ITV Network in 1959. It has been in local control since then.

UTV broadcaster-turned-Ulster Unionist Mike Nesbitt, has warned Northern Ireland needs a strong local independent television station to offer competition to the BBC.

Related topics:ITVMike NesbittNorthern Ireland