Ulster Television has completed the acquisition of 60% of County Media, which owns three radio stations in Cork, for IR£17.3m. Earlier this year, the IRTC approved in principle the 60% acquisition, having earlier blocked a bid to buy 100% of the company.
The deal has been completed through a holding company Fairtell, which is owned as to 60% by UTV and as to 40% by the current shareholders of County Media.
Fairtell has acquired the entire issued share capital of County Media for around £28.9m. 60% of the consideration has been satisfied by a cash payment of £5.8m and by the issue of loan notes in Fairtell with a value of £11.5m, which have been guaranteed by UTV. The remaining 40% has been satisfied by the issue of additional loan notes in Fairtell, with a value of around £11.6m.
The current shareholders' 40% stake in Fairtell is the subject of put and call arrangements between UTV and the vendors which will be exercisable, subject to the approval of the IRTC, following completion of the IRTC's 2001 annual review of County Media.
