Shareholders increase The Local Radio Company offer to £2.5m

The Local Radio Company has received a renewed takeover offer of £2.5 million from Hallwood.

Hallwood’s new offer, which well exceeds its previous bid of £1.8 million, values the company’s shares at 3.5p each.

The company’s renewed bid comes after rival bidder UKRD offered LRC 3.25p per share on Wednesday – UKRD increased its offer after its original £1.25 million bid was rejected in April (see Local Radio Company turns down UKRD bid).

However, Hallwood is in a good position as it already owns more than a 28% stake in LRC and is just looking to buy the remainder of the company.

Hallwood’s chairman Anthony Gumbiner is also a non-executive chairman of LRC.

In a bid to secure a deal, Hallwood has upped its bid and said it will let LRC remain publicly listed as well as providing it with a £1 million loan facility for working capital.

LRC owns a network of over 25 stations, including Isle of Wight Radio and Durham FM.