Proposed Acquisition
24 10월 2003 - 4:00PM
UK Regulatory
RNS Number:2622R
Scottish Radio Holdings PLC
24 October 2003
24 October 2003
SCOTTISH RADIO HOLDINGS plc (SRH)
Proposed acquisition of Dublin's FM104
SRH announces today that it has reached agreement to acquire the entire issued
share capital of Capital Radio Productions Limited which operates FM104, one of
the most popular radio stations broadcasting to the city and county of Dublin.
The consideration will be Euro26 million (#18,141,000) adjusted depending on the
level of net debt of Capital Radio Productions Limited at completion.
The consideration will be satisfied as to 45% by the issue of new SRH shares at
the average middle market price of the shares over the three days prior to
Thursday 23 October 2003. That average price was 854.5 pence which will result
in the issue of 955,360 new SRH ordinary shares at a # to Euro exchange rate of
1.4332. The balance will be satisfied in cash. The new shares will rank pari
passu with the existing SRH ordinary shares, save that they will not qualify for
any final dividend payable in respect of the financial year ended 30 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 Minister for Enterprise, Trade and Employment.
FM104 has been in operation since 1989 and has recently had its licence renewed
for a further ten year period. In the year to 30 June 2003, the company
generated turnover of Euro7,556,000, making operating profits of Euro779,000 after
accounting for one off extra expenditure during the year of Euro374,000. As at June
2003, the net assets of the company were Euro3,051,000.
The transaction is expected to be immediately earnings enhancing to SRH. SRH
owns the only independent national radio station in the Republic of Ireland,
Today FM, which is targeted at a different segment of the market, and therefore
in Dublin the two services are complementary to each other. In addition, SRH
publishes five weekly local papers in the Republic.
Commenting on the proposed acquisition, Richard Findlay, SRH Chief Executive,
said:
"SRH is a major radio operator in the UK and has made a very significant
commitment to the Republic of Ireland. The quality of Today FM and FM104 is
clearly demonstrated by the total of five prestigious awards won by the two
services at last week's PPI Radio Awards. I am confident that FM104 staff,
listeners and advertisers will benefit greatly by the addition of FM104 to the
SRH family, as will the SRH shareholders.
For further information, please contact:
Scottish Radio Holdings plc
Richard Findlay, Chief Executive tel: 0141 565 2202
Alan Wilson, Finance Director tel: 0141 565 2242
Gavin Anderson & Company
Byron Ousey tel: 020 7554 1446
Ken Cronin tel: 020 7554 1442
This information is provided by RNS
The company news service from the London Stock Exchange
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