ITV (LON:ITV) is to sell its famous South Bank headquarters, the Guardian reports. The sale, which is in line with the group’s new strategy, could fetch up to £250 million.
ITV’s share price rose in the previous session, gaining 0.54 percent to close at 159.05p, outperforming the broader UK market, with the benchmark FTSE 100 index ending the session little changed. The group’s shares have given up more than 10 percent of their value over the past year, as compared with about a 3.6-percent drop in the Footsie.
ITV to sell London HQ
The Guardian reported yesterday that ITV was to sell its famous South Bank headquarters, having had an association with the site, formerly the headquarters of London Weekend Television, for more than 40 years. The newspaper quoted a spokesman as saying that the sale fitted with the group’s new strategy implemented by new chief executive Carolyn McCall to “support our ambition to be an agile and increasingly digital organisation”.
“By remaining in our current London office and studio spaces we can focus more time and resource on the areas of the business which will deliver greatest value,” the spokesman pointed out, adding that these locations provided “excellent modern, functional and flexible working environments”.
Proactive Investors quoted Liberum as commenting that ITV could use the proceeds of the disposal to reduce debt, return cash back to shareholders, support mergers and acquisitions, and for investments. The comments came as the broker maintained its ‘buy’ rating on the shares.
Analyst ratings update
The 17 analysts offering 12-month price targets for ITV for the Financial Times have a median target of 190.00p on the shares, with a high estimate of 275.00p and a low estimate of 110.00p. As of October 5, the consensus forecast amongst 19 polled investment analysts covering the blue-chip group has it that the company will outperform the market.