Multi-media group, Emap, is reported to be about to launch a full takeover of Scottish Radio Holdings (SRH), in which it already has nearly a 28% stake.
According to a report in
The Scotsman, radio industry sources said that Emap chief executive Tom Molney has drawn up plans to make a bid for the remaining SRH shares, despite assuring investors that he did not intend to acquire the rest of the company when he bought his current 27.8% stake for £90.5 million from Scottish Media Group in January.
Emap assured the City after the acquisition, it would only bid for all of SRH if a third party acquired a substantial stake or launched a rival bid. Following that statement, Emap has been prevented by Stock Exchange rules from making a bid for SRH for six months, this time limit has now expired.
David Liston, media analyst at Gerrard told The Scotsman, Emap’s holding means SRH is vulnerable to a full take-over. He said: “It seems inevitable Emap will buy them out.”
A spokesperson for Emap said they were unable to comment at this time.
SRH has enjoyed a strong first half to the year as revenues nudged up 10%, spurred on by a strong press and radio performance (see WPP Takes Bullish Stance As Pre-Tax Profits Rise) and is well placed to see growth continue in the second half of 2004.
Emap, which already owns London radio stations Kiss and Magic, has saw radio revenues getting off to a slow start this year, however it expects a modest pick up over the remainder of 2004 (see Emap Makes Steady Progress Towards Full Year Targets).
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