SMG Sells Virgin Radio For £53.2m

SMG has sold Virgin Radio to TIML Golden Square, a subsidiary of Times of India Group, for £53.2 million.

The deal sees the station lose the Virgin name, although it will continue in its present form until the autumn.

TIML said that it will invest in excess of £15 million developing and rolling out its new brand.

It added that the new proposition will be faithful to the existing format and will win new audiences and revenues via multiple platforms and touch points such as mobile, on-line and digital.

The Indian group also owns the Times of India, the world’s largest-circulation English broadsheet daily newspaper, and India’s leading English news channel, Times NOW.

Rob Woodward, SMG chief executive, said: “I believe that £53.2 million represents a sound price for Virgin Radio and a good deal for SMG shareholders.

“The disposal of Virgin Radio is consistent with our overall strategy and the proceeds of the sale will allow us to return cash to shareholders, as well as further strengthen an already healthy balance sheet.”

Virgin Radio: 020 7434 1215 www.virginradio.co.uk SMG: 0141 300 3000 www.smgplc.plc.uk