Sharewatch: Radio Sector Lifted By Acquisitions
The radio sector was seen in focus yesterday following news that Emap has bought SMG‘s 27.8% stake in Scottish Radio Holdings for £90.5 million. Reports suggested the deal would kick off the long awaited consolidation of the radio industry (see SMG Sells Radio Stake To Reduce Mounting Debts).
SMG was lifted 8.89% as the deal allowed it to reduce its debt to £140 million, as well as potentially ushering in the break up of the group. SRH added 3.94% and Emap rose by 2.14% on the acquisition.
Other radio groups also improved as the market digested the news. Capital Radio improved by 4.05% and GWR climbed 10.6% higher following reports that Daily Mail & General Trust might sell its stake in the group.
Meanwhile, Kelvin MacKenzie’s Wireless Group saw shares increase by 3.79% after strengthening its position in the UK local radio market with the acquisition of Forever Broadcasting for £8.1 million (see Wireless Group Secures Forever For £8.1 Million).
Broader market sentiment was lifted yesterday as London blue chips rose to eighteen month highs with oil and insurance stocks driving the gains. The FTSE 100 closed 0.7% higher at 4,518.1 with the FTSE 250 close 0.5% better off a 6,137.4.
The closing prices of media company shares on Monday were:
