MacKenzie Outlines Plans For Wireless Group Purchase
Radio operator The Wireless Group has confirmed reports that it has received a proposal for a cash offer for the company from its senior management, including chairman and chief executive Kelvin MacKenzie.
While reports over the weekend stated that MacKenzie was preparing to take control of the company in a deal worth £100 million, TWG stated that the bid proposals remain subject to several conditions, and there is no certainty that any firm offer will actually be made.
Any offer made for the company will need to be considered by independent directors, Keith Sadler, Stephen Davidson, and Patrick Cox.
According to the Sunday Times, MacKenzie’s proposed deal would see the former Sun editor buy out TWG’s other big shareholders. The purchase would include News Corp’s 30% stake in the broadcaster, and Liberty Media’s 28% holding. Other investors which would need to sell their stakes to complete MacKenzie’s deal include Jupiter Asset Management and SocGen.
The move towards private ownership of TWG comes amid increasing consolidation in the radio sector, with broadcasting heavyweights Capital and GWR set to merge in the next few months, following a decision by the Office of Fair Trading not to refer the deal to the Competition Commission (see Capital GWR Merger Escapes Competition Inquiry).
TWG has worked hard to increase its standing against rival broadcasters recently, ending last year on a high with the award of the last remaining FM radio licence in Edinburgh to the company by Ofcom (see Wireless Group Scoops Edinburgh Radio Licence).
More recently the company has tabled a bid for an FM licence in the Solent area, covering Southampton, Portsmouth, the Isle of Wight and West Sussex and providing a potential adult audience of 1.25 million. The licence is the largest yet to be advertised by Ofcom, and is being targeted by TWG with proposals for a 24-hour speech-based station fronted by TV personality and local celebrity, Fred Dinenage (see Ofcom Invites Bids For Solent FM Licence).
Wireless Group: 020 7269 7180
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