Emap Snaps Up SRH For £391 Million
Emap has secured control of Scottish Radio Holdings (SRH) for £391 million, seizing control of the company’s 22 radio stations and selling its newspaper interests off to Johnston Press for £155 million.
The SRH board accepted Emap’s deal, which values the company at £391 million, with the company receiving 1,088 pence per share, after rejecting an offer of 1,040 pence per share earlier this year (see Emap Reserves Right To Bid For SRH).
SRH’s takeover will see its 22 radio stations form part of Emap’s portfolio, with possible rebranding to extend the reach of several high-profile networks. The move marks a continued consolidation of the radio industry, following Capital Radio and GWR’s merger earlier this year (see GCap Begins Trading As Chrysalis Snaps Up Century).
In addition to purchasing SRH, Emap announced that it will sell off the company’s newspaper operations, Score Press, which comprises 45 local weekly newspapers, to Johnston Press for £155 million. The move will help recover some of the company’s takeover costs, leaving Emap to concentrate solely on SRH’s radio interests.
Commenting on the deal, Tom Moloney, Emap chief executive, said: “This transaction enables us to create the highest quality independent local radio business, reaching all of the UK’s major conurbations and delivering a strong position in the Republic of Ireland.”
The move sees SRH going back on its pledge earlier this year to avoid takeover through expansion and acquisitions, with chief executive David Goode stating an interest in boosting the company’s English portfolio (see SRH To Avoid Takeover Through Acquisitions).
Last month saw SRH deliver mixed first half results to investors, with a strong operating profit overshadowed by lacklustre trading and a drop of 7% in broadcasting revenues year on year for April. The company’s overall turnover in the first half was up 10% on the last period to £51.9 million, while like for like revenues were up by 4% (see SRH Gives Mixed Results To Investors).
Emap: 01733 568 900 www.emap.co.uk Scottish Radio Holdings: www.srh.com