GWR Takes 3 Stations From Capital

GWR has agreed to buy all the shares of Radio Trent, Mercia Sound and Leicester Sound from Capital Radio for £4.77m cash and more than 1m GWR shares. This means that GWR will have 17 radio licences.

The Radio Authority told MediaTel that the full details of the acquisitions and share swap were not entirely clear to them at the moment. The deal gives Capital a 20% share in GWR; this is very significant because under the Radio Authority’s points system once a company owns a 20% stake, they acquire 50% of the other companies points. Points are calculated according to population reach. If Capital do actually have a 20% stake and not a 19.99% stake then it would put Capital very close to the 15% of all points limit, which would in turn prevent them from owning more than 20% in any other radio station, such as the INR3. It therefore seems likely that the full 20% limit has not been reached leaving Capital free to pursue other bids.

Radio Authority 071 430 2724