SMG plc completes disposal of 25% stake in GMTV

Further to the earlier announcement on May 10 2004, the board of Scottish Media Group plc ("SMG") has announced today that SMG has completed the disposal of its 25% stake in GMTV Limited to ITV plc for a total cash payment of £31m.
Andrew Flanagan, Chief Executive of SMG, said: "The ITV merger created a 50% shareholder in GMTV and we don’t want to have a minority interest in someone else’s media business. It is clearly in our shareholders’ interests to sell the stake at an attractive price. Our focus is on driving and capitalising on the operational performance of our wholly-owned media assets as the advertising markets continue to improve."
SMG’s original 20% shareholding was acquired in 1991 and increased to 25% in 2000.
Since that time, changes in the structure of GMTV’s shareholder base have resulted in SMG’s board taking the view that this investment could no longer be regarded as strategic and that the interests of SMG’s shareholders would be best served by disposing of the stake.
The proceeds of the sale will be used by SMG to reduce debt.
(GB)