TVC considers its 18% UTV share

Investment firm TVC Holdings has said that it will consider all options regarding its 18% shareholding in UTV Media.

The Dublin company’s representation on the UTV board was eradicated earlier this year, after John McGuckian — a non-executive director at TVC — was ousted as chairman of the Belfast-based broadcasting group due to a perceived conflict of interests. In the aftermath of that move, Shane Reihill — TVC’s executive chairman — resigned as a non-executive director of UTV.

Since profiting from the sale of Dublin technology company, Norkom last year — in which it had a 27% stake — TVC’s main investment asset has been its stake in UTV. Its long-term aim is to dispose of a number of its non-core investments and build up a portfolio of around four high-profile investments. However, current market conditions have dictated that no movement, on that front, has been made.

At TVC’s AGM in Dublin yesterday, Mr Reihill was asked by a shareholder about the level of the company’s asset value being taken up by the UTV stake. The chairman said the board didn’t view the stake as being disproportionate in value terms, but that the company’s options were open regarding the investment. Mr Reihill added that it would not be in the best interests of shareholders to comment on UTV any further.

Mr Reihill also told shareholders that the company has no plans to pay a dividend in the foreseeable future or to exercise its right to buy-back its own shares. He added that, on the latter issue, while the decision is that of the board, the general view among the company’s institutional investors is for no share buy-back programme to be initiated at this time.

Mr Reihill also noted that TVC had — in the past financial year — looked at a number of new investment opportunities, but had not opted to act on any. “We believe there are restructuring opportunities in Ireland and the UK, where companies with excessive debt need to raise new equity at attractive terms for new investors,” he said.