Business
Strategic Update
Strategic Update.
About this update from Stv Group Plc
[{"type":"text","content":"\n SMG PLC\n12 April 2007\n\n\n\n\nTHIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE\nUNITED STATES, AUSTRALIA, CANADA OR JAPAN\n\nThis announcement is an advertisement and not a prospectus and investors should\nnot purchase any shares referred to in this announcement except on the basis of\ninformation in the prospectus to be published by Virgin Radio Limited ('Virgin\nRadio') which is to be re-registered as a public company prior to listing.\nCopies of the prospectus will, following publication, be available from Virgin\nRadio's registered office at Pacific Quay, Glasgow, G51 1PQ.\n\nSMG outlines new strategy and announces plans for Initial Public Offering of\nVirgin Radio\n\nThe Board of SMG plc ('SMG') announces today some key components of its strategy\nfor the business and its intention to list Virgin Radio by way of an Initial\nPublic Offering (IPO).\n\nThe Board will focus SMG on TV as its core business. The CEO, Rob Woodward, is\nexecuting a turnaround plan for TV which will be detailed in June. The TV\nleadership has already been strengthened by two senior and proven executives.\n\nThe Board considers Primesight to be an excellent business. The current sale\nprocess for Primesight has been terminated, because the Board has judged the\nprice achievable, although in the range of market expectations, as too low. The\nBoard believes this is due to the historically weak position of SMG as a seller.\nSMG now has the financial and leadership stability to initiate a fresh sales\nprocess for Primesight, when the Board decides this is appropriate.\n\nSMG intends to seek a separate quotation for Virgin Radio over the coming\nmonths. There has been considerable investment in Virgin Radio during the last\nyear: in broadcast talent and online content, in sales and marketing, and in\nplatform expansion and digital rollout. The Board anticipates that Virgin\nRadio's IPO will create a strong and focussed radio business, with a great\nbrand, that will provide an attractive, pure-play investment opportunity.\n\nVirgin Radio is one of the UK's three national radio licences and is the only\nnational station with a pop and rock format. It broadcasts in analogue format on\nAM and digitally on DAB, satellite television, digital terrestrial television\nand online in addition to holding a London FM licence. Virgin...