The Board of Directors in i TV2 AS decided yesterday afternoon to terminate the guarantee agreement between TV 2 and TVNorge. The financial consequences for Schibsted ASA is a cost of NOK 21 million in 1999. This settlement eliminates all financial risk related to the agreement.
The consequences of the termination for the TV 2 group is an aggregated cost after tax of NOK 76 million. Of this is NOK 12.5 million already charged in 1998. The net charge is hence NOK 63.5 million. The figures are after tax andare calculated based on TV 2s 49% ownership share in TVNorge.
Schibsted owns 33,33% of TV 2. Provisions related to the guarantee agreement of NOK 7.5 million have already been made in Schibsteds accounts as of 2nd quarter 1999. The residual cost is hence NOK 13.5 million for 1999.
In addition to the cash settlement the termination agreement also includes a clause stating that TV 2 will compensate TVNorge with free ad space of a value of NOK 30 million over three years.
TV 2 has a written confirmation from SBS, TVNorges main shareholder, that the agreement has been approved by their Executive Committee.