Radio operator, The Wireless Group (TWG), has confirmed media speculation that it has received a proposal regarding a possible cash offer for all the issued share capital of the company, from its senior management including chairman and chief executive Kevin MacKenzie.
Industry reports over the weekend stated that MacKenzie was preparing to take control of the Group, in a deal worth £100 million. However, TWG revealed that the bid proposal ‘remains subject to a number of conditions and there can be no certainty that any offer for the Company will be made’.
In a statement released this morning, TWG said that independent directors, Keith Sadler, Stephen Davidson and Patrick Cox would consider any offer on its merits, if and when any such offer is made.
The move towards private ownership of TWG comes amid consolidation within the radio industry, with GWR and Capital Radio set to merge in the next few months. Last September saw Capital and GWR agreed to a proposed £711 million merger, creating a single broadcaster with control of more than 40% of the radio advertising market (see Capital And GWR Agree £711 Million Merger Terms).
TWG said that the independent directors would make further announcements as appropriate and that shareholders in the Group are recommended to take no action at this stage.
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