SMG Increases Stake In Scottish Radio Holdings

SMG has increased its interest in Scottish Radio Holdings (SRH), by acquiring a further 5.9% of the company’s issued share capital. This follows the move just over a week ago to buy a 14.9% stake (see SMG Acquires 14.9% Stake In Scottish Radio Holdings) and brings SMG’s total holding to 20.8%.

The decision to acquire the initial stake was thought to anticipate a relaxation of ownshership rules in the Communications White Paper released last week (see White Paper Paves Way For Communications “Revolution”). However, the future of the ‘points’ system for radio ownership has been left rather unresolved by the document. As SMG’s stake now exceeds 20% the deal will be subject to regulatory approval, which will decide whether SMG will now have a controlling influence over SRH, but it could acquire nearly 10% more of the issued share capital before being forced to make a take-over bid. A full bid would not be allowed unless SMG disposed of either SRH’s radio assets or its own TV assets.

Following SMG’s acquisition of the intial 14.9% stake, SRH called in Goldman Sachs to complete a strategic review of its future options (see Scottish Radio Holdings Appoints Goldman Sachs For Strategic Review).

Scottish Radio Holdings: 0141 306 2242 SMG: 0141 300 3000

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