SMG has announced a share issue worth in the region of £95m as part of a plan to dramatically reduce its debt loading.

The money raised by the issue will be used to pay down a chunk of debt, refinance a further tranche of debt, and be reinvested in SMG's core television businesses.

In a statement, SMG chief executive Rob Woodward said: "The Board of SMG believes that the Rights Issue is an important step in the transformation of the Group's balance sheet. It will significantly reduce debt, substantially decrease interest payments, allow flexibility in timing of disposals and ensure that we can now focus fully on achieving our broadcasting [key performance indicators]. Despite difficult market conditions we are on track to deliver substantial cost savings and have targeted the reduction of our indebtedness as the next stage in transforming the business. With a much strengthened balance sheet and additional financial resources, the Directors believe that SMG will now be well placed to maximise the opportunities available to the Group."