CARLTON SHAREHOLDERS APPROVE TECHNICOLOR SALE

CARLTON Communications, one of the UK’s leading commercial broadcasters, have announced that their shareholders formally approved the sale of Technicolor to Thomson Multimedia at an Extraordinary General Meeting.
The terms of the disposal agreed by shareholders value Technicolor at £1.41 billion
The sale has received French, EU and US regulatory approval, and is expected to complete on March 16, 2001.
Carlton announced on December 5, 2000 that the Board was carrying out a full review of their dividend policy, bearing in mind the on-going investment in digital media and the changing shape of the Group as a whole.
This review will take into account the sale of Technicolor and their conclusions will be announced at the time of Carlton's interim results in May.
In November 1999, Carlton announced their decision to focus on their core media businesses. In line with this strategic focus, Carlton decided to divest a number of their businesses, including Technicolor. The Technicolor sale process was formally launched on May 15, 2000.
On December 11, 2000, it was announced that agreement in principle had been reached with Thomson for the proposed transaction. Definitive agreement remained subject to conditions including exchange of contract and completion of due diligence which have now been satisfied.
The disposal will enable Carlton's management to focus on the company's broadcasting, production and new media activities, as well as the development of ONdigital. The cash proceeds from the sale will provide resources for such development as well as for the expansion of Carlton's businesses both organically and by acquisition.
Carlton announced on December 5, 2000 that the Board was carrying out a full review of their dividend policy, bearing in mind the on-going investment in digital media and the changing shape of the group as a whole.
The Board's review will now take into account the impact of the sale of Technicolor on the group's financial profile in determining the appropriate policy for both future dividends and capital structure. (CD)