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McGuinness and Kilkenny Involved in TV3 Stake Sale
LONDON (Reuters) - Broadcaster ITV said on Wednesday it had agreed to sell its 45 percent stake in Ireland's TV3 to private equity group Doughty Hanson for around 70 million pounds in cash.
Doughty Hanson agreed in May to buy CanWest Global Communications Corp's 45 percent stake in TV3, Ireland's only terrestrial commercial broadcaster. Under terms of the partnership, ITV had to match Doughty Hanson's offer or sell its own stake.
The remaining shareholders in TV3, which include U2 manager Paul McGuinness and Ossie Kilkenny, the band's accountant, have also agreed to sell their stake to Doughty Hanson.
ITV said the deal is expected to be completed by the end of the month, subject to regulatory approval, with the proceeds to fund ITV's current programme of returning 500 million pounds to shareholders.
Its shares were down 0.2 percent at 105-3/4 pence by 9:13 a.m. British time.
ITV shows like "Coronation Street" make up a large portion of TV3's programming under a programme supply agreement that expires at the end of 2007.
The sale is the latest in a series of disposals by the country's biggest commercial broadcaster since it was created by the merger of Carlton and Granada in 2004, including Carlton Books, special effects firm the Moving Picture Company, and Granada Learning. It still owns stakes in football clubs Arsenal and Liverpool.
Earlier this month, Charles Allen, the architect of the Carlton-Granada merger, bowed to investor pressure over the group's poor performance and stepped down as its chief executive.
LONDON (Reuters) - Broadcaster ITV said on Wednesday it had agreed to sell its 45 percent stake in Ireland's TV3 to private equity group Doughty Hanson for around 70 million pounds in cash.
Doughty Hanson agreed in May to buy CanWest Global Communications Corp's 45 percent stake in TV3, Ireland's only terrestrial commercial broadcaster. Under terms of the partnership, ITV had to match Doughty Hanson's offer or sell its own stake.
The remaining shareholders in TV3, which include U2 manager Paul McGuinness and Ossie Kilkenny, the band's accountant, have also agreed to sell their stake to Doughty Hanson.
ITV said the deal is expected to be completed by the end of the month, subject to regulatory approval, with the proceeds to fund ITV's current programme of returning 500 million pounds to shareholders.
Its shares were down 0.2 percent at 105-3/4 pence by 9:13 a.m. British time.
ITV shows like "Coronation Street" make up a large portion of TV3's programming under a programme supply agreement that expires at the end of 2007.
The sale is the latest in a series of disposals by the country's biggest commercial broadcaster since it was created by the merger of Carlton and Granada in 2004, including Carlton Books, special effects firm the Moving Picture Company, and Granada Learning. It still owns stakes in football clubs Arsenal and Liverpool.
Earlier this month, Charles Allen, the architect of the Carlton-Granada merger, bowed to investor pressure over the group's poor performance and stepped down as its chief executive.
