In a statement released today, SMG states that its shareholders will receive a 50% interest in the merged entity, under the terms of the merger proposal.
SMG's board is currently considering the proposal and an announcement is expected in due course, a spokesperson told MediaWeek.
UTV confirmed that it had approached SMG in a statement: "Discussions are at an early stage and there can be no certainty that a merger will occur nor as to the structure or terms on which any merger might happen."
Yesterday, The Times reported that UTV's adviser, Numis Securities, has held discussions with Citigroup, the bank that advises SMG, and suggested the possibility of a merger of equal between the two Celtic broadcasters.
Both companies are listed on the London Stock Exchange. UTV has a market capitalisation of £180 million, while SMG's is £221 million.
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