Scottish Media Group’s acquisition of Ginger Media Group is
expected to go ahead, despite speculation that Granada will attempt to
scupper it by voting against the proposal.
As an 18.5 per cent shareholder in SMG, Granada will have an opportunity
to vote at the general meeting, due to be held on 31 January. A
spokesperson for Granada said the reports were premature. He said: ’We
are yet to be convinced that this is of shareholder value.’
The proposed pounds 225 million deal includes the absorption of pounds
75 million of Ginger’s debts. Apax Partners and Virgin group, which each
have a 20 per cent stake, and Chris Evans and Ginger’s management will
split the remaining pounds 150 million between them.
It is also thought that Granada believes the pounds 225 million price
tag excessive for the company.
A spokesperson for SMG scotched reports that Granada could put a spanner
in the works by claiming that a negative vote would at worst cancel out
the positive vote promised by another SMG shareholder, Flextech.
As well as shareholder approval, the other potential obstacle for the
merger is the compulsory public interest test being carried out by the