Milestone, the company which used to own a small handful of radio stations in the UK have this morning entered into an agreement, subject to shareholder approval, to dispose of Property Weekly as a stand-alone business unit to Tindle Newspapers Limited for a consideration of ?1.4 million.
In the last few years Milestone had a share in, or owned various radio stations including Kick FM, Rugby FM and Reading 107. They also backed new applications for new licences including FM106 The Burn – one of the unsuccesful applicants for the Blackburn licence. All stations were sold during the first half of 2006, with the final asset, Passion 107.9 being sold to Absolute Radio in June.
Milestone Chief Executive, Andy Craig, said: ‘Throughout the Company’s strategic review, we have made clear that we are committed to explore all opportunities to maximise Shareholder value at what is a challenging time for the regional newspaper industry.
‘We are delighted to have been able to reach this new agreement, securing a consideration that is almost 40 per cent higher than that which had originally been offered by Letterbronze for the whole of Milestone’s publishing division, thereby enhancing the ongoing cash position of the Company. Furthermore, the
Company has also entered into an agreement with Tindle to share future newspaper distribution costs in Oxfordshire, which we believe will have a material
positive impact on the ongoing publishing business.
‘Milestone is now reopening discussions with a number of third parties regarding the disposal of the remainder of the Company’s publishing division.’