John Perriss, a TLRC director has written openly to shareholders of the company advising they reject an offer from UKRD, and accept the counter offer from Hallwood instead. Hallwood is owned by TLRC chairman Anthony Gumbiner.
John Perriss, an Independent Non-Executive Director of The Local Radio Company plc says the UKRD Offer should be rejected by Shareholders because the cash price offered in the Hallwood Offer is 25 per cent higher than the UKRD Offer and therefore Shareholders who do not wish to continue their involvement with the Company can sell their Shares at a higher price.
Hallwood has offered a £1m loan facility to provide the Company with working capital, should the deal go ahead.
The Hallwood Offer was made on [link=http://radiotoday.co.uk/news.php?extend.4618.2]Thursday[/link] on the basis of 2.5 pence in cash per Share, valuing the entire issued share capital of the Company at approximately £1.8m. Hallwood already owns a 28.26 percent stake in The Local Radio Company.