Ulster Confirms Possible Takeover Bid For TWG

Ulster Television has confirmed that it has entered into discussions for a possible takeover bid for The Wireless Group (TWG) owner of talkSPORT radio station.

Earlier this morning the directors of Ulster Television confirmed recent media speculation over the acquisition of TWG, saying that discussions were at a preliminary stage and that they may or may not lead to an offer being made.

Ulster TV is understood to be discussing terms over a bid that values TWG at over £100 million. Meanwhile, Kelvin MacKenzie, chief executive of TWG is trying to orchestrate a management buyout pitched at £100 million, or 90 pence a share.

Reports of the proposed sale of TWG began in February when The Times revealed that investment bank, Goldman Sachs, was advising the broadcaster following a “sales memorandum” earlier in the month (see Wireless Group Preparing Buyout Auction).

Interest in TWG was expected to be high, with a spate of consolidation currently gripping the radio industry. However, earlier this month it was revealed that UK radio companies were shunning the auction of TWG as they do not want to compete with the BBC (see UK Radio Companies Shun TWG Auction).

According to a report in the Independent on Sunday, most of the key players in the radio industry, including Chrysalis Group and Emap, have decided not to bid for TWG as the BBC dominates talk radio and owns the direct rival to talkSPORT, Radio Five Live.

Meanwhile, reports this week show that Daily Mail and General Trust (DMGT), owners of the Daily Mail, may be interested in a takeover bid for the new radio giant GCap, of which it already owns 15% (see Rumours Of DMGT Bid For GCap).