Ginger Media Group Draws Up Suitors Shortlist

The Ginger Media Group has drawn up a shortlist of potential buyers for the sale of all or part of the company. Four bidders have emerged including Scottish Media Group (SMG), Clear Channel and French radio group NRG. Each of the bids is similar in value, averaging between £225 million and £235 million. Scottish Media and Clear Channel are thought to be the main contenders at present.

As yet no deadline has been set to finalise the deal and Ginger Media confirmed today that it was unlikely to be completed before the end of the year. Chief executive David Campbell told Newsline that his group wanted to take its time to consider the “qualitative aspects” of each bidder.

Scottish Media Group was making no comment today, but it is believed that part of its interest in acquiring Ginger Media is that SMG’s ownership of Ginger would deter Granada from making a takeover bid for the Scottish group. Under the rules of media ownership, Granada would not be able to control both Virgin Radio, which is part of Ginger, and its own LWT Television ITV franchise.

Bid rumours have been surrounding Ginger Media, which produces the Channel 4 show TFI Friday, for a number of months, after talks of a flotation failed to materialise (see Ginger Media Group In Bid Rumours). It is expected that Ginger will be looking for a strategic partner with radio interests outside the UK, which has the financial resources to forward the group, when considering the shortlisted suitors.

Ginger Media Group: 0171 663 2300