CAP Clean Air

RNS Number:1749J
Granada Group PLC
17 April 2000


  Not for release, publication or distribution in or into
  the USA, Canada, Australia or Japan
                                                         
                                                         
         CAPITAL RADIO PLC AND GRANADA GROUP PLC
        STRATEGIC ALLIANCE FOR BORDER TELEVISION
                            
  Capital Radio plc ("Capital Radio") and Granada Group
  plc ("Granada") have signed an agreement for Granada to
  buy the television assets of Border Television
  ("Border") for a cash consideration of #50.5 million,
  subject to the successful completion of the acquisition
  of Border by Capital Radio.
  
  Border and Granada have significant long-standing
  commercial agreements whereby Granada handles airtime
  sales and transmission for Border.  Under the terms of
  this agreement, Granada will have the right to acquire
  from Capital Radio, and Capital Radio the right to sell
  to Granada, Border's television assets ("the assets")
  for a period of three years following the completion of
  the acquisition of Border by Capital Radio.
  
  The agreement includes an exclusivity clause, which
  states that Granada cannot negotiate with any other
  party, regarding the purchase of the assets for a
  period of 6 months from the date of this announcement.
  
  David Mansfield, Chief Executive of Capital Radio,
  said:
  
  "This agreement further strengthens our bid for Border.
  It protects the long term future of Border's television
  business with a Group which is committed to the
  development of television assets and enables Capital to
  be totally focused on doing what we do best - building
  successful radio businesses."
  
  Charles Allen, Chief Executive of Granada, said:
  
  "This is a good deal for our shareholders and
  reinforces our determination to be at the forefront of
  ITV consolidation.  We have the option to buy Border
  Television and we will extend our long-standing
  commercial agreement with Border Television."
  
  A summary of the agreement is attached.  Capital Radio
  is being advised by Credit Suisse First Boston and
  Granada by Lazards.
  
  ENQUIRIES
  
  Capital Radio             020 7766 6288 Granada         020 7451 3000
  David Mansfield, Chief Executive        Charles Allen
                                          Susan Donovan, Granada Media
  
  Credit Suisse First Boston020 7888 8383 Lazard          020 7588 2721
  Anthony Fry                             Nicholas Shott
  
  Finsbury                  020 7251 3801 Citigate Dewe Rogerson 020 76389571
  Rupert Younger                          Simon Rigby
  James Leviton
  
  
  Credit Suisse First Boston (Europe) Limited, which is
  regulated by The Securities and Futures Authority
  Limited, is acting exclusively for Capital Radio and
  for no one else in connection with its offer for Border
  ("the Offer") and will not be responsible to anyone
  other than Capital Radio for providing the protections
  afforded to customers of Credit Suisse First Boston
  (Europe) Limited nor for providing advice in relation
  to the Offer.
  
  Lazard Brothers & Co Limited, which is regulated by The
  Securities and Futures Authority Limited, is acting
  exclusively for Granada and for no one else in
  connection with the transaction referred to in this
  announcement and will not be responsible to anyone
  other than Granada for providing the protections
  afforded to customers of Lazard Brothers & Co Limited
  nor for providing advice in relation to the
  transaction.
  
  This announcement does not constitute an offer or
  invitation to purchase any securities.
  
  
           APPENDIX:  SUMMARY OF THE AGREEMENT
  
  
  1.Exclusivity: Granada cannot negotiate with any other
     party, other than Capital, regarding the purchase of
     the assets for a period of 6 months from the date of
     this announcement.
     Capital Radio cannot negotiate with any other party
     regarding the sale of the assets for a period of
     three years following the completion of the
     acquisition of Brown.
  
  2. Put & Call Options:  The agreement provides for
     the following:
     -    Granada has the option to purchase the assets
          at any time during the three year period
          following completion of the acquisition of
          Border by Capital Radio ("the call option")
     -    Capital Radio has the option to require Granada
          to purchase the assets at any point during the
          two year period following the first anniversary
          of the completion date ("the put option")
     -    These options are subject to Granada's
          acquisition of the assets receiving all
          necessary regulatory clearances.
     -    At the end of the three year period, Capital
          Radio has the right to sell the assets to
          Granada irrespective of any regulatory issues,
          with the transaction being completed within six
          months.  If Granada does not purchase the
          assets at this point, it has undertaken to find
          an alternative purchaser.
     -    The consideration payable under the put and
          call options is subject to adjustment by
          reference to completion accounts.
  
  
  3. Airtime Sales and Transmission Contracts:  This
     agreement confirms that Border will continue these
     contracts as part of the Capital Radio Group for a
     minimum period of five years.
  
  
  4. Granada's Undertakings in relation to Capital
     Radio's bid for Border:  Granada has undertaken not
     to buy any Border shares or make an offer for Border
     unless Capital Radio's offer for Border lapses.
  
END

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