TV3 close to deal on equity placing

Final agreement to place the remaining 35 per cent stake in TV3 with a new investor is understood to be close. A number of institutional investors are understood to be have expressed an interest in investing in the new TV station and negotiations are now understood to be well advanced on the placing of the shares.

The largest shareholder in TV3 is CanWest Global, the Canadian TV company, which holds 45 per cent of the equity. A further 20 per cent is held by the original TV3 investment consortium of Windmill Lane Studios, U2 manager Mr Paul McGuinness, and accountant, Mr Ossie Kilkenny. Originally it had appeared likely that a number of investors would take the remaining shares. However it is now believed more likely that, despite the interest of a number of investors in the project, the remaining shares are likely to be placed with one institutional investor. A number of the large Irish venture capital funds are being tipped as likely investors in a project which might be seen as too risky by conventional pension funds.

Five options for new investment are understood to have been examined and given outline approval by the Independent Radio and Television Commission, which must approve the station's capital structure. The IRTC is expected to announce its approval of the new investor within the next ten days or so. The final decision will be made in the next fortnight, according to Mr Greg Gilhooly, director of corporate development at CanWest Global. Given the nature of the investment, the new investor is likely to be taking a mix of straight equity capital and some preference share stock, which could be translated to equity at a later date. TV3 is set to go on air at the end of September, offering a mix of programming aimed at the 25 to 44 year-old age group and intended to be attractive to advertisers.