Chrysalis Confirms Strategic Review

Chrysalis, owner of Galaxy and Heart, has confirmed that it is to carry out a strategic review which could lead to a demerger of its radio and music businesses.

NewsLine reported last week that Chris Wright, the company’s founder and 26% majority shareholder, is coming round to a suggestion put forward by Schroder, the group’s second largest shareholder, that its radio business should be sold off (see Chrysalis Could Sell Off Radio Operations).

Chrysalis said today in a statement: “In the light of continued consolidation activity in the UK radio sector, the board has decided to initiate a formal review of the strategic options to best facilitate Chrysalis Radio’s participation in the longer term development of UK commercial radio.

“The review will be wide-ranging and will assess all options which can deliver maximum value to Chrysalis shareholders, including a potential demerger of the radio and music businesses.”

Chief executive of Chrysalis, Richard Huntingford, added: “The valuable market positions we have created at Chrysalis Radio, coupled with the ongoing consolidation in UK radio, suggest that now is an appropriate time to consider a formal review of our strategic options in this area.

“The latest Rajars and current trading confirm that we start this process from a position of considerable strength. We have no pre-conceived view on the outcome of the review, other than a commitment to ensure Chrysalis Radio’s participation in the long term development of the UK radio sector and thereby deliver the greatest benefit to all stakeholders, including shareholders, listeners, advertisers and employees.”

Chrysalis: 020 7221 2213 www.chrysalis.com