The BBC has announced that it is to sell its UK transmitter network for £250 million.
Bob Phillis, deputy director general of the BBC, announced that a consortium led by Houston–based Castle Tower Corporation and the French group, TeleDiffusion is the “preferred bidder” for its UK transmitter network. The network is to be privatised in a deal worth over £200 million. The Castle Tower consortium outbid the favourite NTL, the old transmitter and engineering arm of the Independent Broadcasting Association, now ownedby International CableTel, one of Britain’s largest cable communications groups. Other unsuccessful bidders included the security company, Securicor, and a management buy-out team led by Mercury Asset Management.
The privatised UK network will be run by Ted Miller, head of Castle Tower’s international operations. The assets of the sale include a ten year contract to transmit all of the BBC’s radio and television channels and contracts with some 500 highly qualified staff.
Merlin Communications International, a management and employee buy-out team from the World Service, backed by the venture capital group 3i, is the preferred bidder for the BBC’s World Service network business. Assets will include a ten year contract to deliver World Service radio and a global distribution system and third party distribution contracts.
The £250 million earned from the sale of the Home Service transmitters will help the BBC fund the transition to digital broadcast technology. The proceeds of the sale of the World Service network, believed to be around £30 million, will go to the government, as the transmission network was funded by government grants.
Bob Phillis said, “the preferred bidders satisfied all our requirements for both businesses including pension and other employment considerations. This will be a good deal for the BBC and all concerned.”
