ACT Venture Capital is expected to emerge as the third shareholder in TV3, when an announcement is made by the Independent Radio and Television Commission today. TV3 would not comment yesterday, but it appears that the Irish venture capital company is set to take up a sizeable equity stake in the new station.
TV3's biggest shareholder is CanWest Global, the Canadian TV giant, which owns 45 per cent. Another 20 per cent is owned by the original TV3 investors, Windmill Lane Studios, the U2 manager, Mr Paul McGuinness and accountant, Mr Ossie Kilkenny. TV3 has been in negotiations for some time with institutional investors interested in taking the remaining 35 per cent stake. Initially, it appeared that a number of institutions would take the shares, but it now seems likely that one investor will take the shares.
ACT, however, is supported by money from a range of the large Irish pension fund investors such as AIB Capital Markets, New Ireland, Ulster Bank, Norwich Union, Friends Provident, Telecom Eireann Superannuation Fund and the CIE pension fund. This means that investors in all these institutions will be indirectly taking a stake in the new television station, which is due to go on air at the end of this month. ACT was founded in early 1994 by four senior AIB executives and has at its disposal a total fund of some £50 million, much of it already invested in Irish industry in a range of companies. It is managed by Mr Niall Carroll.
The details of the investment by ACT and its financial structure are expected to be announced today. The shares were placed for TV3 by AIB Corporate Finance. Typically, a new investor would buy some straight equity shareholding and also invest some other funds through vehicles such as preference shares which could later be converted into equity.
