SMG, the Scottish media company, is planning to buy back as much as £30 million in stock through a tender offer.

The group, which recently sold Virgin Radio to Times of India, also confirmed plans to change its name to STV Group.

SMG, which has a market value of £94.7 million after its shares have fallen more than 70 per cent in the past year, is concentrating on developing its core television business, following the sale of its radio and outdoor advertising operations. Its shares were up 1.05p, or 3.5 per cent, to 11.25p today.

The company last month reported a rise in half-year profits to £2.7 million from a loss of £8.6 million last year. SMG said it hoped to reduce its dependence on revenue generated by ITV from 70 per cent to 50 per cent by 2010. The group recently said it had reduced net debt in the past 12 months by 90 per cent from £189.4 million to £15.1 million.

The share buyback will begin at 5pm on September 25, SMG said. Shareholders can tender their stock at between 9p to 15p a share, according to the company. It will give small shareholders — those who hold 10,000 or fewer shares — the opportunity to sell their SMG holdings.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax