UKRD bids for The Local Radio Company

The Local Radio Company (TLRC) has received a bid from rival radio group The UKRD Group that values the company at more than £1 million.

UKRD already owns 13.51% of TLRC and is offering 2 pence a share, which makes the offer worth £1.24 million.

The Local Radio Company owns 20 radio stations including Sun FM, Isle of Wight Radio and Silk FM together with Jazz FM.

UKRD operates six stations including Cornwall’s Pirate FM.
In the results for its financial year ended 30 September 2008, Local Radio had revenues of £14.74 million, slightly up on the year before. It made a loss on continuing activities before tax of £5.61 million, down from £7.9 million in 2007.
The company had entered talks to sell its Jazz FM national station to a consortium led by former executive chairman Richard Wheatley. It is not clear how far those talks have progressed.

TLRC proposed an open offer earlier this month valuing each new share at 0.25 pence with the aim of raising £1.51 million. The proposal was subject to shareholder approval at the planned AGM on April 1.

Trevor Smallwood, chairman of UKRD, says: “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.”

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