Wireless Group Secures Forever For £8.1 Million
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.”
The latest RAJAR figures for the three months to September 2003 reveal a mixed bag of results for Forever Broadcasting’s local stations. Tower FM saw its weekly reach increase by 7.5% year on year to 86,000, Peak FM rose by 16.7% during the same period to 126,000 and The Wolf remained at 66,000.
MacKenzie’s Wireless Group appears keen to strengthen its position in the UK radio market and recently reached a deal that will see it consolidate its influence over digital broadcasting in London. The radio company acquired a 10% stake in DRG, owner of the London III digital multiplex licence, from a subsidiary of Panasonic (see Wireless Group Expands Commitment To Digital Radio).
Wireless Group: 020 7269 7180
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