UKRD wins battle for The Local Radio Company

UKRD have finally secured the controlling share in The Local Radio Company, despite facing a higher offer from rival bidder Hallwood Financial.

The radio investment group UKRD now own 50.09% of the existing issued share capital of TLRC after a renewed bid of 4p per share, up from its previous bid of 3.35p per share.

Hallwood also made a second counter offer of 5p a share just after the markets closed, up from 4p, which would have represented a 54% premium to TLRC’s closing price of 3.25p on May 8.

However, the TLRC Board opted for UKRD’s lower offer, despite Hallwood’s higher bid and £1 million loan facility offer.

Hallwood was previously thought to be in the stronger position out of the two bidders as it already owns more than a 28% stake in the radio group, was prepared to allow it to remain publicly listed and Hallwood’s chairman Anthony Gumbiner is a non-executive chairman of TLRC (see Shareholders increase The Local Radio Company offer to £2.5m).

TLRC owns a network of over 25 stations, including Isle of Wight Radio and Durham FM.