Authority clears SRH’s €26m bid for FM104

SCOTTISH Radio Holdings has had its €26 million bid for FM104 cleared by the Competition Authority, with stringent conditions attached.

The authority yesterday cleared the deal provided FM104’s stake in the struggling NewsTalk 106 is sold on by December 31, 2004. Under the deal, SRH is also to take on the €4m debt of the group putting a total price of €30m on the buyout.

SRH owns Today FM and the review by the authority which began in December was undertaken to see what impact the deal would have on local radio in the Dublin region.

FM 104 is owned by Dermot Hanrahan and other private investors and the way is now clear for the multi-million pay out to Mr Hanrahan and his associates.

The authority yesterday concluded that if FM104 is to pass to SRH then FM104’s stake in NewsTalk 106 would have to be sold on to a third party.

The authority further ruled that FM104 can have, in effect, no further involvement with NewsTalk.

It will also be barred from holding any directorships on the station’s board.

To ensure a level playing field in the Dublin region, the authority has also barred FM104 from the current sales contract it has with Beat FM and it has to distance itself also from the sales and advertising activities conducted by Independent Radio Sales on behalf of the other stations in the area.

SRH is involved in radio broadcasting in Britain as well as in Ireland and has extensive publishing interests, including the Kilkenny People.

Ownership of Today FM has given it control of the only independent national radio station in this country. Getting its hands on FM 104 deepens its involvement in Ireland further.

The authority also ruled the takeover of FM104 had to be carried out within 12 months of yesterday’s ruling.