Kelvin MacKenzie’s Wireless Group is planning to strengthen its position in the UK local radio market with the acquisition of Forever Broadcasting for £8.1 million.
The Wireless Group already controls 16% of Forever Broadcasting, which owns a handful of local radio stations including Tower FM in Bolton, Peak FM in Chesterfield and The Wolf in Wolverhampton.
The proposed deal will see MacKenzie take full control of the rival radio group in a move that will bring the number of local stations owned by the outspoken former Sun editor to 16, alongside national speech-based station, TalkSPORT.
The deal values Forever Broadcasting at 31.6 pence a share and equates to more than twice the turnover generated by the company last year. Undertakings are being made to accept the offer, which is being recommended by Forever’s board of directors.
Kelvin MacKenzie, chairman and chief executive of Wireless Group, said: “This is a superb acquisition for Wireless that fits well with our strategy of growing a profitable local radio group. There will be considerable benefits for all stakeholders in our companies as we strengthen further Wireless’s position as a real force in local radio in the UK.”
John Josephs, chairman of Forever Broadcasting, added: “The offer provides our shareholders with the choice of remaining investors in radio or realising their investment for cash whilst allowing our staff to benefit from enhanced career opportunities by being part of the larger Wireless Group.”
Wireless Group shares were up 0.5p at 115.5p in late-morning trading.
