SMG merger talk revived

Ulster Television was today said to have renewed its interest in a merger with Virgin Radio owner SMG.

The Times said UTV has approached SMG with a merger proposal to create a media group worth around £400m (€592m).

It comes just three months after SMG turned down two “unacceptable” merger offers from talkSport owner UTV.

The first offer proposed a nil-premium merger while the second offered SMG a slightly bigger share of the combined company.

They were both rejected because SMG’s market value was significantly higher than UTV’s, making it a bad deal for SMG. However, UTV is now worth £200m (€296m) while SMG is worth £175m (€259m) – making a merger more attractive.

The Times said the latest proposal was for a nil-premium merger. SMG shares rose by 2% today, while UTV was off by almost 2%.