Global expected to confirm £30m deal with Bauer

Global Radio is expected to confirm the sale of eight stations in the Midlands to Bauer Media in a deal thought to be worth around £30 million.

Last year, Global offered to dispose of the eight Midland-based stations in a bid to appease competition concerns by the Office of Fair Trading over Global’s £375 million purchase of GCap Media (see Global Offers To Sell Off Midlands Stations).

In order to avoid being referred to the Competition Commission for the merger, Global offered to either dispose of Heart 106 in the east Midlands or continue to operate under the Heart brand as a franchise.

The radio group also proposed selling off GCap’s BRMB, Beacon, Mercia & Wyvern in the West Midlands.

A number of parties were understood to be bidding for the stations, including the former chief executive of Chrysalis Radio Phil Riley, Bauer Media and Midlands radio entrepreneur Mike Owen.

However, earlier this month, Bauer emerged as the preferred bidder and has reportedly been in exclusive talks with Global to agree a deal (see Bauer bids for five Global stations).

Global also announced the sale of its majority stake in the national digital radio platform Digital One to fellow shareholder Arqiva earlier this month (see NewsLine).

Transmission company Arqiva, previously a 37% shareholder, is understood to have paid a nominal sum for Global Radio’s 63% stake and in return Global expects cheaper transmission costs for its digital stations.