Hallwood admits defeat in fight for LRC

RADIO group UKRD has won the takeover battle for the Local Radio company, owner of Macclesfield’s Silk FM and Burnley’s 2BR.

Its rival Hallwood Financial conceded defeat today, withdrawing from the fight which has pushed the offer price up from 2p to 4p. UKRD gained a 50.09% stake in the business despite a later 5p offer from Hallwood.

The deal values Local Radio at £2.8m and offers shareholders a 0.25p premium on the current share price of 3.75p.

Local Radio’s chairman Anthony Gumbiner, who was also chairman of Hallwood, said: “It would be ungracious of me not to congratulate UKRD on its victory and I wish UKRD well.

“To fight and win a contested takeover battle is no small thing especially in the middle of the recession. I will do all I can to make the board transition as easy as possible.”  

Cornwall-based UKRD owns six stations. Its ownership of Local Radio will give it another 21. The business previously held a stake in Oldham’s 96.2 The Revolution until it was sold to DJ Steve Penk last year.

Earlier this year Local Radio announced a share offer in a bid to raise cash needed to restructure the business which has been hit by a fall in advertising and listeners.