UTV SIGN FOR MAJORITY HOLDING IN COUNTY MEDIA

ULSTER Television (UTV) have announced the completion of the acquisition of 60 per cent of the issued capital of County Media.
UTV have paid IR£17.3 million for the majority stake in the Cork-based radio broadcasting business, which on completion of the transaction leaves County Media with a net debt of circa IR£1.95 million.
John McCann, Managing Director of UTV, said: “We are absolutely delighted to finalise our acquisition of County Media. This is an important strategic move for UTV, which further strengthens our position throughout Ireland. This acquisition will serve to enhance the earnings of UTV Group and reinforces our position as significant players in the indigenous market.”
On February 27, 2001, UTV announced that the Independent Radio and Television Commission (IRTC) had approved the Transaction in principle. However, final completion of the transaction tied to preconditions and the agreement of appropriate transaction documentation between the parties and with the IRTC. With the conditions now satisfied in full and the transaction documentation agreed the deal has finally been completed.
The deal has been carried out through an intermediate holding company Fairtell Limited which is owned as to 60 per cent by UTV as to 40 per cent by the current shareholders of County Media, the vendors. Fairtell have acquired the entire issued share capital of County Media for a consideration of circa IR£28.9 million. 60 per cent of the consideration has been satisfied by a cash payment of IR£5.8 million and by the issue of loan notes in Fairtell with a value of IR£11.5 million, which have been guaranteed by UTV. The remaining 40 per cent of the consideration has been satisfied by the issue of additional loan notes in Fairtell, with a value of circa IR£11.6 million.
The vendors’ 40 per cent shareholding in Fairtell is the subject of put and call arrangements between UTV and the vendors which will be exercisable, subject to the approval of the IRTC, following completion of IRTC’s 2001 annual review of County Media.
The acquisition of County Media represents a key step in the implementation of UTV’s stated strategy to expand their media interests on an all-Ireland basis. (CD)