Scottish Media Group has announced it is selling its outdoor advertising division Primesight for up to £62m to a private equity firm.

SMG said in a statement today that the price GMT Communications Partners is paying represents a "clear uplift" on offers previously received for Primesight.

"This is a good price for the business and clearly ahead of where we were in the previous sale process," said Rob Woodward, chief executive of SMG. "This is a strong example of the new board delivering on its promises."

However analysts Citigroup Research described the price as "solid but not spectacular". On the basis of the deal it valued cinema advertising operation Pearl & Dean, which SMG is also looking to offload, at around £27m.

Subject to shareholder approval GMT Communications will pay £52m in cash and two loan notes of £5m.

SMG also said that its television and cinema advertising divisions and Virgin Radio continue to "trade in line with the board's expectations for the current financial year".

"The proceeds of the sale will strengthen SMG's balance sheet while freeing the management team to concentrate on the turnaround of the television business and the disposal of our other non-core businesses," added Mr Woodward.

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