Four commercial local radio stations put up for sale by owners

FOUR COMMERCIAL local radio stations have been put up for sale by their owners.

It is understood that Ocean FM in the north east, Mayo-based Mid West radio and KCLR, which broadcasts in Carlow and Kilkenny have been made available as a group. In addition, Kildare's KFM is being sold separately.

It is not clear if a bid for all four from a single suitor will be considered.

Dublin-based corporate finance group Raglan Capital, founded by Cathal Friel, is believed to be handling the sale process.

Bids are being sought on the basis that this will probably be one of the few remaining consolidation plays in the commercial radio market here.

It is understood that the three stations being sold as a group are expected to achieve turnover of €13.5 million in the coming year and earnings before interest, tax, depreciation and amortisation (EBITDA) of about €8 million.

KFM is expected to report EBITDA of more than €3 million on turnover of about €5 million. Bids are due in by late March.

Interested parties are likely to include TV3, Vienna Investments, The Irish Times Ltd and Liberty Global, owner of the NTL and Chorus cable television companies. John Taylor's Alpha Newspaper group, which has radio interests in the North, is also a possible bidder.

All of these media groups were underbidders in the sale of Emap's three radio stations to Denis O'Brien's Communicorp.

Communicorp and UTV are not expected to enter the bidding due to the large number of licences that they own and rules on ownership and media concentration.

Raglan is believed to have worked on putting together this sale process for some time. Each of the three stations being sold as a group has different shareholders.

Ocean, which employs more than 50 staff, is owned by River Media and led by chief executive Tim Collins.

Its franchise area comprises Sligo, north Leitrim and south Donegal and its 10-year contract began in 2004.

Mid West broadcasts to county Mayo and employs about 30 staff. It is led by chief executive Paul Claffey, who is also an investor. Cork-based Thomas Crosbie Holdings has a small shareholding in the station.

KLCR, which employs 25 staff, is owned by several investors, including chief executive John Purcell.

KFM has about 40 employees and is also owned by a number of backers, including River Media's Pádraig O'Dwyer and its managing director Noel Shannon.