Scottish Radio Holdings (SRH) said this morning it has reached agreement to acquire Capital Radio Productions, which operates FM104, for €26 million.
The acquisition will be 45 per cent paid for by the issue of 955,360 new SRH shares. The new shares will not qualify for any final dividend for the year to September 2003.
The transaction, which has been approved in principle by the Broadcasting Commission for Ireland, is conditional on the approval of the Republic of Ireland Competition Authority and the Minister for Enterprise, Trade and Employment.
FM104 has been in operation since 1989 and has recently had its licence renewed for a further ten years.
In the year to June 30th, 2003, the company generated turnover of €7.55 million, making operating profits of €779,000 after accounting for one-off extra expenditure during the year of €374,000.
The transaction is expected to be immediately earnings enhancing, SRH said.
SRH owns the only independent national radio station in the Republic of Ireland, Today FM. SRH also publishes five weekly local papers in the Republic.
AFP