UKRD calls on Local Radio Company to accept £1m cash bid

UKRD has called on The Local Radio Company’s (TLRC) shareholders to accept its £1 million cash offer for the business, amid warnings that TLRC requires additional funds to continue trading beyond April.

Local radio firm UKRD, which already owns 13.5% of TLRC, made an offer to buy the rest of the company two weeks ago, however, on April 1 TLRC said it failed to receive enough shareholders’ approval for the deal to go through.

TLRC then warned that “the company’s cash flow projections show it requires an injection of funds by the end of April in order to continue trading”.

In response, UKRD released a statement saying: “UKRD board reiterates that it has funding available to allow an injection of working capital from UKRD in Local Radio as soon as practicable, once the offer is declared wholly unconditional.”

UKRD currently owns six local radio stations in the UK – 96.4 The Eagle, County Radio Sound 1566 AM, KL FM 96.7, STAR 107 (Cambridge and Ely) and STAR 107.7 FM.

However, it is keen to own and operate local commercial radio services, which result “in the delivery of a strong platform for both local and national advertisers”.

After making its original bid, UKRD said it “believes, by combining UKRD and TLRC, the enlarged group would be better placed to undertake the steps necessary to meet the challenges and to seize the opportunities that exist in these difficult economic trading conditions”.

Trevor Smallwood, UKRD chairman, said: “The combination of UKRD and [TLRC] will result in a stronger player in the local radio sector throughout the UK, and an expanded service offering to listeners.”