SMG confirms UTV merger proposal

SMG, the owner of the Scottish and Grampian ITV franchises and Virgin Radio, has confirmed that it has received a merger approach from UTV. “SMG confirms that it has received a merger proposal from UTV,” the company said in a statement to the London Stock Exchange this morning. “Under the terms of this proposal, SMG shareholders would receive a 50 per cent interest in the merged entity.”

A report in The Times indicates that UTV has proposed a nil-premium merger that values SMG in the region of £400m. However, the paper added that SMG may have some concerns given its slightly larger market capitalisation compared to UTV.