CARLTON BUYS HTV, SELLS MERIDIAN STAKE

CARLTON Communications have announced they have agreed the terms for the acquisition of HTV, the ITV broadcaster for Wales and West of England, from Granada Media.
The consideration consists of net cash of £181 million payable on legal completion of the transaction and Carlton’s 20 per cent stake in Meridian, the ITV broadcaster for the South East of England, already 80 per cent owned by Granada Media.
HTV broadcasts to 4.5 million people and is the neighbouring ITV broadcaster to Carlton’s Midlands and West Country stations.
Carlton said: “Including HTV, Carlton will broadcast to over 26 million homes or almost 50 per cent of the UK population. Carlton’s stations will account for 40 per cent of ITV’s net advertising revenue and just over 10 per cent of UK total television viewing, below the legislative ceiling of 15 per cent.”
Carlton are to acquire net assets of £33 million which generated operating profits of £14 million in the year ended December 31 1999.
Gerry Murphy, Chief Executive Officer at Carlton, said: “Bringing HTV together with Carlton’s ITV stations makes perfect sense. We will build on HTV’s strong track record of delivering high quality news and regional programmes while offering advertisers the whole of the West of England and Wales as a package.”
Carlton have assumed immediate management and control of HTV, and Granada Media have assumed effective control of Carlton’s stake in Meridian pending legal completion of the transaction.
Legal completion will follow completion of Granada Media’s acquisition of HTV from United News and Media Plc, which is expected to occur by the end of this year.