Sky to keep ITV stake for “medium term”

BSkyB has said it intends to retain its 7.5% holding in ITV for the medium term.

In a statement confirming the successful placement of the remaining 10.4% the satcaster owned in ITV plc, BSkyB described the 7.5% as an investment, and said it would remain a committed shareholder of ITV.

Sky has placed 404,362,095 with Morgan Stanley Securities at 48.50p per ITV share, a total consideration of around £196 million, and a loss of £349 on the original purchase.

The placement follows undertakings given by Sky to the Secretary of State for Business, Innovation and Skills.

BSkyB’s original 17.9 % holding in ITV was acquired for £940 million (€1.08 billion) in November 2006, preventing a separate purchase by NTL, ahead of the formation of Virgin Media.

A series of objections and rulings followed culminating in the loss by BSkyB at the Court of Appeal on January 21.