GCap Media’s plans to sell off Digital One, its DAB digital radio multiplex, have reportedly been put on hold as it continues talks with Global Radio about a possible acquisition.
Last week, GCap resumed talks with Global Radio after Global made a third and “final” offer for GCap Media, valuing the Capital Radio and Classic FM owner at £370 million.
The offer, at 225p a share in cash, is conditional on the recommendation of the board. The offer is around 20% higher than Global’s original offer in December of £313 million (see Global Makes Final Offer For GCap).
In January, GCap had announced its intention to exit digital radio as far as possible as part of a cost-cutting strategy, raising fears about the future of the DAB medium (see GCap Media Unveils “Radical” Profit Boosting Measures). It said it had agreed to sell its majority stake in the Digital One multiplex for a nominal sum to Arqiva, its minority partner.
The Times has reported that Global has told the Takeover Panel, the stock market regulator, it is not happy for a sale of Digital One to take place until a decision has been made on whether or not it will acquire GCap.
The move raises the possibility of a Global vote of confidence in the future of DAB, which has also been hit by the closure of digital-only stations such as Oneword and GCap’s Life.
The Times claims Global does not have the same level of concern about the other asset sales planned by GCap, which are the three Xfm regional stations, in Wales, Manchester and Scotland, and digital stations Planet Rock and TheJazz.
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