Chrysalis Group Plc confirmed speculation this morning that it has made an offer for the radio assets of Guardian Media Group(GMG).
The Group revealed it held preliminary discussions with GMG last week, according to a report in the
Sunday Telegraph, but pointed out that there “can be no certainty that a transaction will be forthcoming”.
GMG is reported to have rejected a £115 million offer for its radio division from Chrysalis, according to the Sunday Telegraph, and is predicted to receive further bids for its radio businesses, which include Jazz FM and a number of regional stations.
Paul Myners, chairman of GMG, said: “We have received over recent months a number of expressions of interest in either buying of combining our radio assets, but none of these offers have reflected the true values seen in our radio portfolio.”
In a statement to the city, Chrysalis said that the offer was “in line with stated strategy”. The Group will continue to review acquisition opportunities in the radio sector, which could be complementary to Chrysalis’ existing radio business and provide an opportunity to create additional long term shareholder value.
Earlier this month, Chrysalis announced an improvement in trading within the radio advertising market during the first two months of this year (see Chrysalis Performing In Line With Expectations).
According to the Group’s pre-close statement, trading for the Group for 2004 was in line with the Board’s expectations for the full year, confirming predictions made in January (see Chrysalis Optimistic For 2005, Despite 3% Revenue Fall).
Related Links
