SMG shareholders to share £30m
- Published: 05 September 2008 11:13
- Author: Rob Shepherd
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- Last Updated: 05 September 2008 13:15
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SMG plans to return up to £30m to shareholders through a tender offer as it has surplus funds following its rights issue and disposal of units.
The Scottish giant, which struggled to attract acceptable offers for its Virgin Radio business, launched a rights issue in November 2007 to raise £95.1m and slash debt.
SMG also sold Virgin Radio to TIML Golden Square Ltd for £53.2m in cash in June 2008. The station has since been rebranded as Absolute.
The company said it would return the funds that are surplus to its operational requirements.
Once the tender offer is complete, SMG said it planned to effect a share consolidation and to change its name to stv group.
SMG said the current name no longer accurately reflects the principal activities of the group, which are focused on its television businesses operating under the stv name.
SMG shares rose 3% to 10.25p in early trading this morning (5 September).
