Business
SALE OF VIRGIN RADIO TO TIML
SALE OF VIRGIN RADIO TO TIML.
About this update from Stv Group Plc
[{"type":"text","content":"\n RNS Number : 6972V SMG PLC 30 May 2008 \n \n30 MAY 2008\n\nSMG PLC\n\nPROPOSED DISPOSAL OF VIRGIN RADIO \nTO TIML FOR CASH CONSIDERATION AT COMPLETION OF £53.2 MILLION\n\n\nSMG plc (SMG) is pleased to announce the disposal of Virgin Radio Holdings Limited and its subsidiaries (Virgin Radio) to TIML Golden Square Ltd (TIML) for a cash consideration at completion of £53.2 million. \n\nKey Points\n\n\n\nThe upfront cash consideration of £53.2 million represents a successful outcome from the sale process.\n\n\n\n\n\nThe estimated net proceeds of the disposal are expected to be approximately £48.7 million (after completion adjustments and transaction-related costs of which £2 million has already been paid). \n\n\n\n\n\nSMG will repay £15.0 million to Bank of Scotland pursuant to the terms of SMG's facility agreement and £4.0 million to the Scottish and Grampian Pensions Scheme. In addition to these payments, SMG expects to retain £1.7 million to provide additional headroom and flexibility and to return approximately £30 million to shareholders, representing approximately 3.15 pence per share (before taxation). Details of the proposed return of cash to shareholders will be announced in due course.\n\n\n\n\n\nAdditional consideration of a further £8.0 million will become payable if, within two years of closing, the radio business being sold is licensed to use the 'Virgin Radio' brand (beyond 90 days post completion of the sale). If this additional consideration is received, total gross disposal proceeds would amount to £61.2 million.\n\n\n\n\n\nAll of the directors of SMG who hold shares in the Company as well as UBS Global Asset Management, Hanover Investors Partners and RC Brown Investment Management plc, who at the date of this document, account for, in aggregate, approximately 31.6 per cent of the issued share capital of SMG, have irrevocably undertaken to vote in favour of the disposal at the General Meeting.\n\n\n\n\n\nThe disposal is subject to the approval of SMG's shareholders at a General Meeting notice of which will be posted to SMG shareholders shortly. \n\n\n \nCommenting on t...