Radio station merger revealed
THE Local Radio Company, owner of Macclesfield’s Silk FM and Burnley’s 2BR, stations, is to be bought in a cash deal just weeks after it announced plans to stay on the airwaves by raising £1.5m.
UKRD, which owns a number of commercial radio stations, has made an offer for Local Radio.
UKRD is paying 2p per Local Radio share, which is double the value of the company’s shares at the close of trading last night. The maximum cash amount payable for Local Radio will be £1.25m. UKRD already holds a 13.51% stake in Local Radio.
Earlier this month Local Radio offered existing shareholders 42 open offer shares for every five existing ordinary shares as a price of 0.25p per share with High Wycombe-based Local Radio wanting to use the cash to restructure the business, which has been hit by a fall in advertising and listeners, and provide general working capital.
Mr Smallwood said: “We believe the offer represents an attractive premium over recent trading levels and is in the best interests of Local Radio shareholders as a whole.
