Scottish Media bids on VCI

Some shareholders disappointed with $51.8 mil offer

LONDON — Scottish Media Group has bid $51.8 million for VCI, the video publishing company chaired by Michael Grade, former chief exec of Channel 4.

For SMG — the parent of ITV network company Scottish Television — the move represents its first acquisition outside of Scotland.

However, some shareholders in VCI — which holds the rights to the “Thomas the Tank Engine” videos — expressed disappointment at the bid, arguing the company is worth more.

Last year, VCI posted sales of $178.6 million with a pre-tax profit of $9.9 million. SMG has underpinned its bid by buying 26% of VCI’s shares in the market.

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