Wireless Group Invests Further In Digital Radio Market

The Wireless Group (TWG) has increased its interest in DRG, owner of the London III digital multiplex licence, it was announced today.

The radio company has concluded an agreement with the administrators of Clubmend Ltd to acquire its 6% stake in DRG. The acquisition is subject to the exercise of pre-emption rights by the shareholders of DRG.

TWG is already the joint largest shareholder in DRG with a 23.58% holding and recently agreed to acquire a further 10% stake from Matsushita Electric Europe, a subsidiary of Panasonic.

Kelvin MacKenzie, chairman and chief executive of TWG, commented: “As I said a few days ago, we are serious about investing in the digital future of radio. Listeners clearly want digital radio as evidenced by the record number of sets sold in the run-up to Christmas and the industry is expecting increasing sales this year. It is the hottest, must-have consumer product in the sector.”

The Wireless Group has been in acquisitive mood of late, yesterday agreeing to pay £8.1 million for Forever Broadcasting, which owns three local radio stations in the Midlands and Lancashire.

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