Chrysalis is to sell its radio division to Global Radio, an investment vehicle chaired by the former head of ITV Charles Allen.
The sale, which includes the Heart, Galaxy and LBC brands, will be for £170 million, with Chrysalis saying that it will make a £95 million profit on the deal.
The deal leaves Chrysalis with just its music operations following similar disposals of its book publishing and TV operations.
The purchase of Chrysalis Radio marks Charles Allen’s return to the media industry following his departure from ITV in January.
Richard Huntingford, Chrysalis Group chief executive, said: “We believe that the sale of Chrysalis Radio as a complete entity meets the objectives of our strategic review of facilitating its participation in the longer term development of UK commercial radio and deriving good value for shareholders. This has been a thorough review process which has delivered a good result.”
Chrysalis chairman, Chris Wright commented: “Chrysalis Music is well placed to build upon and exploit its position as a leading international, independent music business. It operates in a growing market and has valuable positions within it. As with Chrysalis Radio, we will continue to monitor the performance and positioning of this business, for the benefit of all stakeholders.”
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