UPDATE 1-SMG to return 30 mln pounds to shareholders
(Adds detail from statement)
Sept 5 (Reuters) - Scottish broadcaster SMG Plc SCSMG.L on Friday said it plans to return up to 30 million pounds ($53.16 million) to shareholders through a tender offer as it has surplus funds following its rights issue and disposal of units.
SMG shares rose 3 percent to 10-1/4 pence by 0741 GMT.
The company, which struggled to attract acceptable offers for its Virgin Radio business in a tough economic environment, launched a rights issue in November 2007 to raise 95.1 million pounds to slash debt.
SMG also sold its Virgin Radio to TIML Golden Square Ltd for 53.2 million pounds in cash in June 2008.
The company said it plans to return the funds that are surplus to its operational requirements.
After the tender offer is complete, the company plans to effect a share consolidation and to change its name to stv group.
The current name no longer accurately reflects the principal activities of the group, which are focused on its television businesses operating under the stv name, it added. (Reporting by Ramkumar in Bangalore; Editing by Sharon Lindores)
