Scottish Radio Ends Takeover Talks As SMG Declines To Reveal Its Intentions

In recent months, the Board has been in discussions with a number of parties which were interested in making an offer for SRH. However, the company believes that recent weaknesses and volatility in the UK stock-market, in particular the media sector, mean ‘it would be unwise to pursue these proposals further at present.’

The principal predator for SRH is Scottish media company, SMG, which has successively acquires Scottish Radio shares in recent months and now holds a 29.5% stake in the group. SRH says it has tried to meet with SMG to ascertain its intentions toward the company, but that SMG has been unwilling to meet the Board.

SRH says it will continue to keep under review the options open to it in the light of any change in stock-market conditions, or change in SMG’s position. It says its business is in a particularly strong position, operationally and strategically, and has a good balance sheet.

Chairman, Lord Gordon of Strathblane CBE, said: “SRH has produced superior investment returns over the last decade, and, in the three years prior to any takeover speculation, has produced the highest shareholder returns in its UK peer group. We remain committed to delivering shareholder value”.

Stock in Scottish Radio plummeted this morning following the news. By midday shares were down by 175p (14.2%) to 1,057½p.