Emap considers €170m sale of Today FM, FM104 and Highland

Troubled UK media group Emap is likely to announce tomorrow that it is gearing up to sell its Irish radio stations, which are valued at about €170 million.

The London-listed group is due to issue a trading statement tomorrow in advance of the end of its financial year, March 31st.

Sources say the statement is likely to signal that it intends to seek a buyer for its three Irish radio interests: national station Today FM, Dublin-based FM104, and Donegal's Highland Radio.

Emap would not comment yesterday as it is bound by stock-exchange rules that require it to inform shareholders of any such move.

Collectively, Emap's Irish radio interests are valued at close to €170 million. The highly-profitable Today FM accounts for the bulk of that figure, with an estimated price tag ranging between €100 million and €120 million.

However, sources cautioned yesterday that a sale of the businesses would depend on the group finding buyers willing to pay the right price.

One industry figure pointed out that the Irish radio stations were operating in a strong market and were generating good advertising revenues. "The Irish advertising environment is a good deal better than the UK, which is particularly tough at the moment," the source said.

In these circumstances, it is unlikely that Emap will sell the three stations if it cannot get what it believes to be a fair price. One observer said it was "not a foregone conclusion" that they would be sold.

There was some speculation yesterday about the most likely buyer. Venture capital firm Doughty Hanson last year bought commercial television station TV3, in a deal valuing the broadcaster at €280 million. The venture capitalist made it clear at the time that it was keen to extend its Irish interests beyond TV3.

UTV, the listed operator of the Northern Ireland ITV franchise, is another likely contender. It is fresh from an unsuccessful attempt to buy Scottish Media Group.

Emap is one of the biggest media players in Britain. Its consumer magazines include women's weekly Grazia, men's magazine FHM and cinema bible Empire.

It also has interests in British radio, including Kiss and Magic, as well as in television and advertising.

However, the group's earnings have come under pressure recently as advertising has migrated online. It began a review of its consumer magazines last year, aimed at saving £20 million (€29.54 million) a year.