SMG’s new management team unveiled a substantial shake-up at the media group on Thursday, including an IPO for Virgin Radio, as the company moves to focus itself on its core TV business. Meanwhile, the sale of its outdoor advertising division Primesight has been put on hold, with a new attempt possible at a later date.
LongAcre Partners and Hoare Govett are advising on the flotation of Virgin Radio, athough news of the spin-off is likely to reheat interest from potential trade and financial buyers. There has been plenty of interest in Virgin Radio in the past, including from Labour peer Waheed Alli and private equity firm 3i.
In December, SMG entered nil-premium merger talks with fellow UK TV broadcaster UTV — having rejected better terms just four months earlier.
Under pressure from irate investors, SMG appointed a new chief executive, Rob Woodward, in February and talks with UTV were terminated.