Capital Expands London Portfolio

Capital Radio, which already owns the leading radio station in London, Capital 95.8, has aquired a 19% stake in up and coming urban contemporary black music station Choice FM. The stake, in Choice’s owners Tainside Limited, cost Capital £3.3m, valuing the whole business at £16m. There is an option in the deal for Capital to acquire the remaining 81% of issued share capital in the future.

David Mansfield, chief executive of Capital Radio, commented on what was described by his company as a ‘strategic investment’: “It brings us to a stake in a brand that has exciting growth potential and operates in an important music genre. We anticipate increasing our shareholding and becoming more involved in the business when the Radio Authority proposals for relaxing ownership gain government approval.”

Choice FM has been broadcasting to South London on 96.9FM since 1990 and launched the North London 107.1FM service last year. Its potential audience is 5.8 million adults and it also owns four digital licences, for London, the North West, the North East and the Severn estuary, along with a 7% share in the MXR digital radio consortium.

Capital Radio: 020 7766 6000 www.capitalradiogroup.com Choice FM: 020 7378 3969/ 0208348 1033 www.choicefm.net

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