Mid Anglia Radio board backs pounds 3.5m GWR offer
GWR, in which Capital Radio has a near-20 per cent stake, has won the support of Mid Anglia's board for a pounds 3.5m offer in cash or shares, significantly higher than the pounds 2m East Anglia Radio was prepared to pay when talks foundered 18 months ago. A few weeks ago East Anglia wrote to Mid Anglia to suggest negotiations re-start, but no talks were held.
Nevertheless, the fate of the bid lies with Emap, the publishing group, and Anglia TV, owned by MAI. Each holds 20 per cent of both Mid Anglia and East Anglia. Emap favours consolidation in general - it was said to be behind the East Anglia approach to Mid Anglia - but is blocked from boosting its own stake beyond 20 per cent as it has local newspapers in the same region.
Emap and Anglia TV now have the choice of cash or shares - so acquiring a stake in GWR - or potentially jointly blocking the bid, which requires 75 per cent approval. So far, GWR has irrevocable acceptances from just over 50 per cent of the shareholders.
Richard Winfrey, Emap's representative on the Mid Anglia board, abstained from voting on the deal, saying he faced a conflict of interest. But Tim Schoonmaker, head of Emap's radio interests, said no decision had yet been made.
The offer is 450p in cash or 0.53257 shares in GWR for each Mid Anglia share. At the GWR closing price of 880p, up 5p, that equates to 469p. The cash alternative is being financed with a mix of bank facilities and new shares.
About 47,965 new shares have been placed with the Daily Mail and General Trust, which has just under 20 per cent of GWR, and 176,661 with Fidelity Investments.
If successful, the bid will mean that GWR holds 21 local radio licences - one more than allowed. But Ralph Bernard, chief executive, said it was well advanced on the sale of one of its Asian stations.
Mid Anglia, with licences in Peterborough, Cambridge, Newmarket and Kings Lynn, lost pounds 12,186 on turnover of pounds 2.14m in 1993. Mr Bernard said investment in programming and technology would make it as profitable as the group's other stations.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...