ISIS Capital has realised its investment in Media Holdings Limited to a new company, Channel Television Holdings Limited at a profit. The sale values the company at GBP20 million. The management team, led by chief executive Huw Davies, has rolled over its equity interests into the new company funded by Yattenden Investment Trust, which has a range of interests in the media sector and the Royal Bank of Scotland. David Elms, a partner of KPMG Corporate Finance, advised both institutional and management shareholders on the deal.
Media Holdings Limited is the holding company for Channel Television Limited which is the operator for the ITV franchise in the Channel Islands. ISIS Capital led the GBP16.3 million management buy-in of Media Holdings in June 2000 and invested a total of GBP7.2 million for a 60 per cent stake in the company. Management held the remaining 40 per cent. The Royal Bank of Scotland’s leveraged finance group provided the senior debt, mezzanine loan and working capital facility to finance the acquisition.
Adam Holloway, director of portfolio management of ISIS Capital, said: “The advertising market has been very soft, but we have been lucky and managed to get an increased valuation with our investment in Media Holdings, generating a reasonable return for our clients despite the marked slowdown in ITV advertising revenues over the last 12 months.”