NTL sells British masts network to Australian group

CABLE company NTL is to sell its network of communication masts and towers after agreeing a deal worth €1.84 billion, it was announced yesterday.

A consortium led by Australia’s Macquarie Group will pick up NTL’s broadcast business, which features about 2,300 sites - including Britain’s tallest free-standing structure at Emley Moor in West Yorkshire.

The division enables more than 22m British homes to receive commercial television, while mobile phone operators and public services such as fire and ambulance are also major users of the sites.

Yesterday’s deal still requires approval from industry regulator Ofcom, although NTL expects to tie up the transaction in the first quarter of 2005. Two years ago it sold the Australian part of its broadcast business to the same buyer - Macquarie Communications Group (MCG) - for €338m.

NTL chief executive Simon Duffy said: “MCG has been an excellent owner of a similar business we sold to them in Australia in 2002 and I am sure that they will prove to be an equally good owner of our UK broadcast business.”

About 1,300 staff will transfer to MCG in yesterday’s deal, which NTL said would allow it to focus on growing its core cable and broadband businesses.

Shareholders are also in line for a windfall as the British-based company said it may use the proceeds to pay a special dividend or buy back shares.

The operations being sold under yesterday’s deal have a 48-year history dating back to the start of ITV.

They came under the NTL brand following its creation in 1996.

Earlier this year National Grid Transco took on another British transmission towers business following a €1.45bn deal with Crown Castle UK.