The sale of Irish radio stations Today FM, FM104 and Highland Radio, as announced in July, must be completed before Bauer purchase Emap's radio division, the Magic owner has announced. Otherwise ownership will transfer back to Emap.
Bauer has agreed to acquire the entire issued share capital of Emap Radio for £422 million in cash as part of a deal which includes Emap consumer magazines. Together, the deal is worth £1.14 Billion.
As at 31 March 2007, Emap Radio had gross assets of approximately £571 million. For the year ended 31 March 2007, Emap Radio had revenue of £143 million and operating profit of £18 million.
Following the disposal of Emap Consumer Media and Emap Radio, Emap will be a focused B2B business publishing B2B titles such as Broadcast.
Alun Cathcart, Executive Chairman of Emap, said: "We are pleased to have achieved a successful outcome in the review of Emap's Group structure. The price achieved for Emap Consumer Media and Emap Radio fully reflects the value of the two divisions. Emap will now be a focused B2B company
with strong market positions, strong cash flow and a proven management team and track record in delivering value and growth."
Cathcart will revert to Non-Executive Chairman after the completion of the disposals. He will work with the new management team of Emap until a new Non-Executive Chairman has been appointed.