Jimmy Buckland, director of Strategy at Wireless Group
UTV Media today announced that it has successfully completed the sale of the entire issued share capital of the company and its wholly owned subsidiary.
The company will cease using the UTV name and following approval from the company’s board of directors, will be known as Wireless Group.
The company expects to receive net cash proceeds, after transaction costs, of approximately £98m from the sale and intends to return a total of approximately £55m of cash to shareholders.
The return of cash will be implemented in two stages. Firstly, approximately £50.8m is proposed to be returned to shareholders through the issue and redemption of a new class of redeemable B shares.
The B Share Scheme is conditional upon shareholder approval.
Secondly, approximately £4.2m is the anticipated amount of the return of cash not returned to shareholders pursuant to the B Share Scheme. This is expected to be returned to shareholders by way of a special dividend payment in July 2016, details of which have not yet been released.