ITV channels in pounds 36m deal


Further consolidation of the ITV sector looked likely yesterday, with the news that Scottish Television is set to acquire a 20 per cent stake in HTV, channel-licence holder for Wales and the West.

The deal, to be put to Scottish Television shareholders, would see pay- TV programme packager Flextech take 20 per cent of an enlarged Scottish Television, for pounds 28m. In return, Scottish Television would receive Flextech's 20 per cent holding in HTV, worth pounds 36m at the time the deal was announced early yesterday. Shares in HTV climbed 14.5p to close at 219p, while Scottish Television closed at 499p, up 17p.

Analysts said the link between the two might lead to a merger, as the ITV sector prepares for new rules on ownership, proposed by the Government, and develops new strategies for the introduction of digital terrestrial TV.

Scottish Television's largest shareholder, the Mirror Group, supports the agreement which would see its 20 per cent stake diluted to 16 per cent. David Montgomery, chief executive of Mirror Group, is to join the Scottish Television board, as will two Flextech executives.

"This is a strategic step, giving us a relationship with a leading broadcaster," said Andrew Flanigan, Scottish Television's finance director.

Flextech packages specialist programming for satellite and cable transmission in the UK. It has equity interests in and/or manages 12 channels, including Bravo and UK Gold. "This deal makes good financial and strategic sense," said Roger Luard, chief executive of Flextech. "It gives us a stake in a larger animal and means we are now very well-positioned."

If the deal gains shareholder approval, Scottish Television will win commissions worth a minimum of pounds 6m, over three years, from Flextech, and will also make mini-series for Hallmark, the greeting card and entertainment company that owns 10 per cent of Flextech.

The Mirror Group stake in Scottish Television has attracted much criticism in the City and, under the Government's proposals on media cross-ownership, the Mirror Group would not be able to raise the stake, described by a Mirror spoke-sman as "strategic".

Scottish Television said it plans to forge closer ties with Flextech's principal shareholders, US cable company TCI and telecoms company US West.

peopleFrankie Boyle responds to referendum result in characteristically offensive style
Life and Style
Couples have been having sex less in 2014, according to a new survey
New Articles
i100... with this review
Holly's review of Peterborough's Pizza Express quickly went viral on social media
footballTim Sherwood: This might be th match to wake up Manchester City
Arts and Entertainment
musicHow female vocalists are now writing their own hits
New Articles
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
musicBiographer Hunter Davies has collected nearly a hundred original manuscripts
Blahnik says: 'I think I understand the English more than they do themselves'
Arts and Entertainment
Michelle Dockery as Lady Mary Crawley in Downton Abbey
TVInside Downton Abbey series 5
Life and Style
The term 'normcore' was given the oxygen of publicity by New York magazine during the autumn/winter shows in Paris in February
fashionWhen is a trend a non-trend? When it's Normcore, since you ask
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam