NM Rothschild & Sons, which is advising RTE on the sale of a majority stake in its tower and transmission business, has issued a document inviting expressions of interest from potential buyers. RTE is to retain a 28% holding in the new entity, Netco.
The sale process, expected to be completed by August, is happening because of the Government's decision to introduce Digital Terrestrial Television services under the Broadcasting Act, 2001.
The move will separate RTE's transmission and content functions and establish a framework for the introduction of DTT in Ireland.
Netco has population coverage of around 99% and a network of 130 sites. The document issued today says RTE is currently discussing the possibility of an ESOP arrangement with Netco staff.
The document says Netco had revenues of £2.5m last year from services to national broadcasters, with £1.8m from non-broadcast services. It also highlights the opportunities offered by the telecommunications sector, saying talks on the provision of mast infrastructure have already taken place with prospective bidders for 3G licences.
