US tycoon tables rescue deal for Setanta

Published on Friday 12 June 2009 10:10

US tycoon Len Blavatnik confirmed today he had tabled a proposed rescue deal for pay-television firm Setanta.

The 20 million offer for 51 per cent of Setanta is aimed at securing the future of the cash-strapped Irish broadcaster by helping it avoid administration.

Setanta's potential white knight founded Access Industries, a privately owned industrial group, in 1986. It also has interests in Top-up TV, which is Freeview's pay TV service, Israeli television's Sport 5 and online sports provider Perform Group.

Access currently has a holding of less than 5 per cent in Setanta.

A statement from the firm today said: "Access Industries can confirm that this morning it submitted a proposal to the board of Setanta to acquire a majority interest in Setanta, refinancing the company.

"The Access proposal is subject to a number of pre-conditions being met.

"Access believes that this proposal would secure the future of the broadcaster for customers, football and employees."

The spokesman said he was unable to disclose the terms of the proposal.

Setanta has TV rights including the Scottish Premier League, English Premier League, FA Cup, World Cup qualifiers and the Blue Square Conference – but is struggling to pay for them as customer numbers have dwindled in the recession.

The broadcaster has around 1.2 million subscribers, but that is short of the reported 1.9 million it needs to break even.

It has been bidding to raise fresh funds from investors, reduce its rights bills or even sell a stake in itself to another company, but Deloitte has been lined up as administrator if the rescue efforts fail.

The group suspended all new customer subscriptions on Wednesday.

Setanta has declined to comment on Mr Blavatnik's proposal, although sources close to the company said it was still working hard on options to refinance the business.

It emerged earlier this week that BSkyB had refused a 50 million lifeline to Setanta, which faces a payment of more than 30 million due to the Premier League.

Backers including private equity firms Doughty Hanson and Balderton Capital, as well as Goldman Sachs, are reported to be refusing to advance the firm any more money.

Another broadcaster, ESPN, has so far distanced itself from reports that it may look to take over Setanta's Premier League games if the company goes into administration, although Setanta has only won one of the six live broadcast packages for 2010 to 2013.