Granada seeks early float to fix market value of ONdigital
Saturday 06 February 1999
Granada is understood to want to examine the possibility of floating ONdigital in 18 months' time. The company is likely to push for the issue to be discussed by ONdigital's board before the end of the year.
Floating ONdigital would help cement the value of the venture, 59 per cent earned by Granada and Carlton, the media group run by Michael Green. City analysts are divided about ONdigital's value, with estimates of its worth ranging from pounds 250m to as much as pounds 1bn.
ONdigital, which launched its 30-channel service in November, has been battling with British Sky Broadcasting, the satellite television group, in the race to sign up subscribers to digital television.
Details of ONdigital's performance are a close secret, but its shareholders expect it to have signed up 350,000 subscribers by the end of the year.
BSkyB will next week update the City on the performance of its digital service when it issues half-year results. However, ONdigital is thought unlikely to issue an update before May.
Charles Allen, Granada's chief executive, is understood to be interested in floating the minimum 20 per cent stake allowed by Stock Exchange rules. Shareholders may also want to capitalise on the soaring valuations attached to hi-tech stocks by seeking a dual listing on Nasdaq, the US exchange.
Carlton and Granada have budgeted a total investment of pounds 375m for ONdigital over the next five years. The venture will break even when it has two million subscribers.
The flotation of ONdigital has been under consideration for some time. Last year Morgan Stanley, the investment bank, was retained to examine the possibility of a float. However, ONdigital is not currently thought to have retained any financial advisors.
If Carlton and Granada decide against an early float, they are likely to wait until 2003 when the business has been up and running for five years.
Meanwhile, Granada yesterday indicated that ITV had increased its share of television advertising revenue since the beginning of the year. Steve Morrison, chief executive of Granada's media division, said ITV's advertising revenues in January grew by 11 per cent on the same month last year. In 1998 ITV's advertising revenues grew by a total of 4.8 per cent.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 3 World learns of app that shows you who unfriended you on Facebook, app promptly crashes
- 4 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
- 5 The Greece debt crisis explained in less than 100 words
Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Tube strike July 2015: Is it still on? Everything you need to know about the industrial action
Eiji Tsuburaya: Godzilla co-creator honoured in today's interactive Google Doodle
Florida teacher sentenced to 22 years in prison for sexually abusing three pupils
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...