Six shortlisted for radio stations

Former FM104 chief executive Dermot Hanrahan and a group of investors who own almost half of Cork-based youth station Red FM have been shortlisted to acquire Emap's Irish radio stations.

Called Vienna Investments, the group comprises Mr Hanrahan, the McEvaddy brothers Ulick and Des, accountants Greg Sparks and Pearse Farrell, event promoter Maurice Cassidy, businessman John Callaghan and the estate of Jim Aiken, the concert promoter who died earlier this year. Mr Sparks is a member of the board of The Irish Times Ltd.

The investors previously owned FM104, the Dublin youth station that is now being sold by Emap along with Today FM and Highland Radio.

They are being advised by corporate finance house Key Capital. Vienna is also active in the UK where it has set up a company called Folder Media to apply for digital radio licences.

Key Capital and accountants Farrell Grant Sparks are expected to invest in the venture on behalf of clients if the bid is successful.

Vienna is one of six groups shortlisted to buy the stations. The others are: UTV; Denis O'Brien's Communicorp; TV3; The Irish Times Ltd; and a group comprising Vitruvian Partners, a UK private equity player, and Richard Findlay, who headed Scottish Radio Holdings (SRH) when it owned Today FM and FM104.

The bids are thought to be in the range of €150-€180 million.

It is understood that Mr Hanrahan would take a senior management role at the stations if Vienna were successful in its bid. The shortlisted groups have been given access to an online data room and will also receive presentations from management at the stations. Second-round bids are due to be lodged in July.

FM104 was sold to SRH, which is now part of Emap, in 2004 netting €30 million for Vienna's backers.

Today FM, FM104 and Highland Radio are expected to achieve combined earnings before interest, tax, depreciation and amortisation of €14.6 million in the year to March 2008 on turnover of €34.5 million.