UKRD Group makes bid for TLRC
The UKRD Group is set to buy out The Local Radio Company in a deal worth over £1 million in cash, just weeks after TLRC announced plans to raise £1.5 million to stay on the air.
The offer being made by UKRD is worth 2p a share or a total of £1.24 million, a 100% premium on yesterday's closing price of 1p a share. Following the announcement on Friday, TLRC shares closed 50% higher at 1.5p.
UKRD already owns 13.51 percent of TLRC.
Commenting on the Offer, Trevor Smallwood, Chairman of UKRD, 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.
"The combination of UKRD and Local Radio will result in a stronger player in the local radio sector throughout the UK and an expanded service offering to listeners.
"We strongly believe that the Offer is considerably more attractive than the open offer proposal announced by Local Radio on 6 March 2009, which is totally unacceptable and could potentially result in loss of control of Local Radio to two Local Radio Directors and heavy dilution for other Local Radio Shareholders."
The Local Radio Company owns 20 radio stations across the South Coast, North West and North East of England, including Silk FM, Minster FM and Fire Radio. UKRD operates six stations, including Cornwall's Pirate FM and two Star services in Cambridgeshire and Weston-super-Mare.
Both groups have shrunk in size in recent months, with TLRC offloading many of its stations in the South West of England including Ivel FM and 3TR FM, and UKRD selling its Star services in Bristol and Cheltenham to independent operators.