Capital Radio Expansion

Capital Radio has increased its hold within the commercial radio sector with an agreed £32.6m takeover of Southern Radio. Capital has already received irrevocable undertakings covering 55.9% of the Southern shares.

The deal is 115p in cash for each share of Southern. The Southern group was formed in 1991 by the merger of Invicta Sound and Southern Radio. The group broadcasts in Kent, Sussex, Hampshire and the Isle of Wight. The bid for Southern is designed to increase Capital’s business outside London where competition continues to grow.

Capital’s own licences for London have just been re-advertised; the present licence expires in October 1995.