UTV seals deal for British radio group

Broadcaster Ulster TV shook hands today on a £98.2m (€144.5m) 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.

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%.

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.

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, radio stations in Cork, Limerick, Dublin, Drogheda and Dundalk and recently won a new licence to broadcast in Belfast. It also owns a third of Juice FM, an independent local radio station operating in Liverpool.

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% on the day before its takeover talks were confirmed.

UTV boosted annual profits by 46% last year after seeing television advertising revenues increase by 16% in what it described as a year of “outstanding achievement”.

Advertising revenues at its radio arm lifted 8% and were set to rise by 20% in the first quarter of this year, it said at the time.