£200m ITV bid for Scottish network ‘inevitable’ says investor

THE largest shareholder of Scottish television network STV has slapped a £200 million price tag on the company amid rumours of a takeover.

Richard Bernstein, boss of Crystal Amber, which has a 19 per cent stake in STV, said it is inevitable that broadcast giant ITV will try to buy the firm.

He said he would expect a buyer to pay about £5.20 per share, which would give STV a value of about £200 million.

Shares in STV, which is led by former ITV executive Simon Pitts, currently stand at £3.55.

STV is a franchise of ITV and broadcasts much of the same content – including shows such as I’m A Celebrity... Get Me Out Of Here! – on Scotland’s third channel.

ITV, which has a stock market value of more than £6 billion, used to be a shareholder in STV but sold off its stake.

Bernstein, who also invests in banknote maker De La Rue, said: ‘This is the last remaining ITV network franchise that ITV doesn’t own. So I believe it is a case of when – not if – there is a bid.’

Crystal Amber first invested in STV in 2013 and it has long been speculated that Bernstein’s fund is pushing for a sale.

But industry sources played down ITV’s interest in STV, suggesting it plays no part in the broadcaster’s immediate plans after new chief executive Carolyn McCall set out her strategic ambitions for the business earlier this year.

Rumours of a takeover spread after STV’s share price jumped last week.

A spokesman for STV said the firm is ‘focused on delivering our growth strategy, which is all about making a profitable, independent future for STV as Scotland’s favourite TV broadcaster and producer’.

They added: ‘We have committed to investing £15 million over the next three years in order to build STV Productions into a world-class independent production company.’