Northern Ireland

ITV deal: UTV to return £55m to shareholders

Havelock House on Belfast's Ormeau Road
Image caption UTV will now be a radio-focused business under the deal

UTV has said it will return up to £55m to shareholders when the company completes its deal with ITV.

The Belfast-based business agreed to sell its television stations and brand to ITV for £100m in October.

That will leave UTV as a radio-focused business, which will change its name as part of the deal.

ITV has said it will retain the UTV name rather than rebrand the TV business as ITV Northern Ireland.

Documents published by UTV on Friday show that its former chairman, John B McGuckian, still owns more than 7% of the business.

About 3% is held personally with the remainder held by the McGuckian family's Milestone Trust.

Mr McGuckian was ousted from the UTV board in 2012.

The documents also contain details of a transitional arrangement between UTV and ITV.

That will allow the UTV radio business to remain in the Havelock House building in Belfast for up to a year, for a fee of £37,500 a month.

The TV newsroom will also continue to provide news to the U105 radio station for a fee of £11,000 a month.

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