Granada seeks early float to fix market value of ONdigital

GRANADA, the media to hotels group, is pushing for an early flotation of ONdigital in an attempt to put a firm valuation on the fledgling pay- television venture.

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.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Mortgage Advisor - OTE £95,000

£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...

SThree: Trainee Recruitment Consultant

competitive: SThree: Are you passionate about sales?Do you have a keen interes...

Recruitment Genius: Loan Adviser - OTE £30,000

£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Day In a Page

Isis in Syria: Influential tribal leaders hold secret talks with Western powers and Gulf states over possibility of mobilising against militants

Tribal gathering

Influential clans in Syria have held secret talks with Western powers and Gulf states over the possibility of mobilising against Isis. But they are determined not to be pitted against each other
Gaza, a year on from Operation Protective Edge: A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians

Gaza, a year on from Operation Protective Edge

A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians
Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously

Illnesses, car crashes and suicides

Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously
10 best trays

Get carried away with 10 best trays

Serve with ceremony on a tray chic carrier
Greece debt crisis: EU 'family' needs to forgive rather than punish an impoverished state

EU 'family' needs to forgive rather than punish an impoverished state

An outbreak of malaria in Greece four years ago helps us understand the crisis, says Robert Fisk
Gaza, a year on from Operation Protective Edge: The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas

Gaza, a year on from Operation Protective Edge

The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas
How to survive electrical storms: What are the chances of being hit by lightning?

Heavy weather

What are the chances of being hit by lightning?
World Bodypainting Festival 2015: Bizarre and brilliant photos celebrate 'the body as art'

World Bodypainting Festival 2015

Bizarre and brilliant photos celebrate 'the body as art'
alt-j: A private jet, a Mercury Prize and Latitude headliners

Don't call us nerds

Craig Mclean meets alt-j - the math-folk act who are flying high
How to find gold: The Californian badlands, digging out crevasses and sifting sludge

How to find gold

Steve Boggan finds himself in the Californian badlands, digging out crevasses and sifting sludge
Singing accents: From Herman's Hermits and David Bowie to Alesha Dixon

Not born in the USA

Lay off Alesha Dixon: songs sound better in US accents, even our national anthem
10 best balsamic vinegars

10 best balsamic vinegars

Drizzle it over salad, enjoy it with ciabatta, marinate vegetables, or use it to add depth to a sauce - this versatile staple is a cook's best friend
Wimbledon 2015: Brief glimpses of the old Venus but Williams sisters' epic wars belong to history

Brief glimpses of the old Venus but Williams sisters' epic wars belong to history

Serena dispatched her elder sister 6-4, 6-3 in eight minutes more than an hour
Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?