SMG have published their Interim Results today, in which Chairman Chris Masters comments about a recent merger approach, and how no response has been made from UTV since they rejected their offer on August 29th.
SMG say they would be willing to hold discussions with the Board of UTV on the basis of a proposal which has regard to the relative market values of SMG and UTV, SMG's prospects and the value of SMG's portfolio of assets. The latest offer was to give SMG 52 per cent of the merged company.
The Chairman also notes that Virgin Radio continues to outperform the market, and comments on how the company has decided to to dispose of the Group's cinema and outdoor advertising businesses Pearl & Dean and Primesight. SMG are also proud of their progress in taking their strong media brands into the online space, which they hope will become an important profit driver for SMG in the coming years.
Donald Emslie, Acting Chief Executive, said:
'SMG has made good progress in the first half of 2006 on many fronts. We have grown pre-tax profits, despite unpredictable advertising markets, made headway in lightening the impact of regulatory costs and taken significant steps in creating new businesses and sustainable revenue streams, most notably in the online environment.'
Read the full report by clicking here.