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GCap sold for £375 million

The UK's biggest radio group has been formed Monday night, as Global Radio agreed to buy GCap Media for £375 million.

Global will pay an 86% premium for the company, which values GCap shares at 225p each.

Commenting on the deal, Charles Allen, chairman of Global Radio said: "We are delighted that the Board of GCap has unanimously agreed to recommend our acquisition of GCap. We believe that this is a very strong business with brands and assets that are highly complementary to those of the Global Radio Group."

"We are excited by the opportunity to build on GCap's position as the leading commercial radio player and are committed to providing the best platform for both our advertisers and listeners."

It has taken four months for Global Radio, whose backers include Irish racing tycoons John Magnier and JP McManus, to reach agreement with the board of GCap, after two previous bids were considered too low.

Tonight's announcement will see Global Radio dominate the London marketplace, with Heart, LBC, LBC News, Classic FM, Capital Radio, Gold, Choice FM and Xfm all operated by the company.

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