Broadcaster Ulster TV shook hands today on a £98.2 million offer for the owner of Talksport radio.
UTV said the deal for The Wireless Group (TWG) was a "cornerstone" in its strategy of expanding across the Irish Sea into radio, and would generate at least £1.5 million in annual savings.
Its offer has been recommended by independent directors of TWG and has received the backing of News Corporation and LMC Radio, which have a combined shareholding of 51.2 per cent.
The deal thwarts efforts by chief executive Kelvin MacKenzie to land the group after his takeover approach in February prompted UTV to make its move.
It is understood that Mr MacKenzie was unable to secure financial backing from private equity companies and did not make a firm offer. Today's deal values his 7 per cent shareholding at £6.4 million.
Investors will be offered 91p a share but can exchange part of the cash for new shares in UTV. The offer represents a premium of more than 10 per cent on the day before its takeover talks were confirmed.
In addition to Talksport, the Wireless Group owns 17 local radio stations such as Swansea Sound and Valleys Radio in South Wales, Wave 102 in Dundee and Signal One in Stoke-on-Trent.
UTV has the Northern Irish ITV franchise, and radio stations in Cork, Limerick, Dublin, Drogheda and Dundalk.
The company, which also recently won a new licence to broadcast in Belfast, owns a third of Juice FM, an independent local radio station in Liverpool.
PA