Windfall on cards at Pinewood
CIGAR-chomping television executive Michael Grade looks set for a £15m windfall from a share float of Pinewood-Shepperton film studios.
Grade, currently shortlisted to chair the BBC, led a £62m management buy-in of Pinewood from Rank four years ago, backed by venture capital giant 3i.
A year later, Pinewood - founded by J Arthur Rank in 1936 - merged with Shepperton, owned by directors Tony Scott and Sir Ridley Scott, in a £35m deal.
A share float is on the cards as 3i seeks an exit from its investment. It could value the historic studios at up to £150m.
Documents filed by Pinewood-Shepperton show that Grade has just over 20% of the capital.
Although there are different classes of shares, they will all be converted to one class on flotation.
Taking into account new money raised and the repayment of loans, Grade could realise up to £15m. The Scott brothers could make over £2m.
The studios' operating profits for 2002 more than doubled to £10.4m, with sales up 24% to £37m, helped by the second Harry Potter film and Tomb Raider II.
Movies which have been shot at the studios over the years include the Carry On comedies, the James Bond films and Harry Potter and the Chamber of Secrets. A float will depend on market conditions.
Neither Pinewood nor 3i would comment. 3i is due to file a trading statement tomorrow ahead of its annual results in May.
