Global Radio To Acquire GCap For £375m

GCap Media has accepted a £375 million takeover bid from rival company Global Radio.

Global Radio, headed by former ITV chief executive Charles Allen, will pay 225p per share, with the conclusion of the deal last night heralding an end of four months of negotiations.

Global made a first bid for GCap in December, of 190p per share, and returned with a 202p per share offer in February, both of which were rejected (see GCap Turns Down Revised Global Radio Takeover Bid).

Speaking last night, Allen said: “We are delighted that the board of GCap has unanimously agreed to recommend our acquisition of GCap.

“We believe that this is a very strong business with brands and assets that are highly complementary to those of the Global Radio Group.

“We are excited by the opportunity to build on GCap’s position as the leading commercial radio player and are committed to providing the best platform for both our advertisers and listeners.”

GCap, Britain’s biggest commercial radio company, said that it was recommending the offer to its shareholders in the “context of an uncertain advertising outlook.”

According to Enders Analysis, commercial radio revenues rose in 2007 by just 2.8% to £598.2 million, following declines of 5.2% in 2006 and 4.3% in 2005, reports the Guardian.

GCap Media: 0207 663 7000 www.gcapmedia.com

Global Radio: www.globalradiosales.com