The shareholders of Setanta Sport Holdings are planning to reinvest the proceeds of a recent share sale in a new US television service, a spokesman said yesterday.
The company has yet to officially reveal the price paid by US insurance giant AIG to acquire a stake in the company, but market sources estimate it may be in excess of €10 million. The size of the stake sold has not been disclosed.
A spokesman for the company's founders, Mr Leonard Ryan and Mr Michael O'Rourke, said the transaction was being assessed by the Minister for Enterprise, Trade and Employment, Mr Martin.
But he said Mr O'Rourke and Mr Ryan would not be benefiting directly from the sale. "The money will be re-invested in the business and will help to launch the new 24 hour sports channel in the US. It will also help fund the development of the Irish sports channel and other projects.
"While no money will be taken out of the company after the sale, it has placed a significant valuation on the company," he added.
The Competition Authority recently approved the purchase of shares in Setanta by AIG. AIG is making the investment via its global sports and entertainment fund.
Setanta is in a major expansionary phase and is putting a lot of resources into its Irish sports channel and its NASN sports network in Europe. This service provides American sports coverage for expatriates living in Europe.
However, its largest commitment to date was its decision to pay £35 million (€50.65 million) to purchase the rights to Scottish premier league football.
