Several shareholders in Dublin radio station FM 104 could be in line for another large payout following the purchase of the station by Scottish Radio Holdings (SRH), writes Emmet Oliver

It was revealed yesterday that Cork station Red FM, which has a large number of FM 104 shareholders, is not part of the acquisition by SRH.

Several FM 104 figures, including managing director Mr Dermot Hanrahan, financial officer Mr Tim Fenn, broadcaster Mr Colm Hayes, head of sales Ms Margaret Nelson, and programme director Mr Dave Kelly, have personal shareholdings in Red FM.

Estimates by experts yesterday put a value of between €15 and €20 million on Red FM, which is one of only two commercial stations in Cork.

Apart from the FM 104 management figures, Thomas Crosbie Holdings has a 20 per cent shareholding, while promoter Mr Jim Aiken has a 5 per cent stake.

Because the station was only licensed in February 2002, a sale in the short term is unlikely, but its steady progress in Cork could make it a buyout target. The station's main competitor is Cork 96 FM, which is owned by UTV.

Following the FM 104 deal, attention now turns to other local and regional radio stations. Speculation has already begun about Galway Bay FM, although the station has denied that a takeover is in the offing.

The stock exchange was informed yesterday that FM 104 is being acquired for €26 million, plus debt of €4.6 million, by SRH. FM 104 was advised on the deal by Merrion Capital Group, which has developed a niche in the media area. The solicitors involved on behalf of FM 104 were A&L Goodbody.

FM 104 has been operating since 1989 and its licence was recently renewed for a further 10- years. In the year to June 30th 2003, the company generated turnover of €7.5 million, making operating profits of €779,000.

Mr Cathal Friel, a director of Merrion Corporate Finance, said: "We are delighted to have advised FM 104 on this transaction and welcome SRH as a new direct competitor in Dublin local radio market."