GWR Radio Group has this afternoon announced the disposal of 12 of its Classic Gold licences to Classic Gold Digital Ltd. This newly-formed subsidiary is to be 80%-owned by UBC Media and 20% by GWR.
The deal, revealed this morning (see UBC Media Confirms Discussions With GWR Over Classic Gold Licences), was struck after GWR’s purchase of DMGT took it over the radio licence ownership limits allowed under broadcasting regulation. UBC will pay £2.1m for the licences, to be satisfied by the issue of 4.9m new shares in UBC to GWR.
Unique Broadcasting Company, which floated on the AIM this July, will take control of all but five of the Classic Gold licences; GWR will retain control of the AM licences for Bristol & Bath, Swindon, Nottingham & Derby, Wolverhampton and Plymouth.
Patrick Taylor, deputy chief executive of GWR, said: “Having added further radio licences to our portfolio earlier in the year through the acquisition of DMG Radio, this agreement will help us to achieve our commitment to the Radio Authority to come back within the ownership limits. We look forward to a continuing association with UBC and the Classic Gold brand.”
GWR Group: 020 7284 3000
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