VFG CREATE LOCAL BROADCASTING TV STATIONS

VFG, the UK’s broadcast video and film facilities group, have announced they have formed a new company, Local Broadcasting Group (LBG), which will create a new group of local television stations broadcasting in many major cities and towns in the UK.
LBG have completed or agreed the acquisitions of the rights to 36 restricted service licence (RSL) local terrestrial television licences, representing over 55 per cent of the local television licences or applications in existence in the UK and they are currently in negotiations with a number of other licence holders for the acquisition of their licences.
LBG have acquired Herts TV, City Television, Glasgow’s Own Television Channel, On Ayr Television and rights to licences for a total consideration of £7.4 million, of which £3.6 million will be paid in cash and the balance by the issue of 3.8 million £1 ordinary shares in LBG.
LBG have acquired the rights to the licences for Aberdeen and, conditionally, Edinburgh from Channel 6 Television for £723,000 in cash and 500,000 LBG shares. They have also secured irrevocable options to acquire the rights to the licences for York, Firth of Clyde and Inverness.
Chief Executive of VFG, David Stamp, said: “This investment puts VFG and LBG at the forefront of local television in the UK. With this move, we will create a new television channel for millions of people for a fraction of the cost of traditional television. This investment should produce substantial returns for VFG shareholders.”
VFG have also recruited a senior management team with television industry experience to develop LBG, which will be run as a stand alone business. The Chief Executive will be David Lowen, a former Director of Yorkshire Television, who is currently overseeing the launch of ITV’s interactive television service. LBG’s Chairman will be Richard Price and David Stamp will become Vice Chairman of LBG. Geoff Bush and Mark Dillon, Directors of Herts TV, are to join the board of LBG as Chief Operating Officer and Technical Director respectively.
LBG are in the early stages of raising up to £50 million in order to fund the completion of the roll-out of their current stations as well as allowing them to acquire other existing and potential licences.
(CD)