SRH adds to media assets here with takeover of Donegal Highland Radio

SCOTTISH Radio Holdings has snapped up Donegal Highland Radio, its third Irish takeover in five years.

The takeover will net the investors in the Letterkenny-based station €7 million from the all-cash deal.

They include chairman Packie Keaney, Con Friel, Michael McGinley, William Patterson, managing directors Charlie Collins, Shaun Doherty and James Boyle.

The deal adds to SRH’s media assets in the Republic, which includes Today FM, Dublin station FM104, the Longford Leader and Kilkenny People.

SRH said in the year to the end of March 2005, Highland Radio had turnover of €2.14 million and operating profits of €275,000.

The station had net assets of €1.1 million. The company employs about 50 people and no losses are expected. Scottish Radio said the price it paid for Highland was 10 times the station’s earnings before interest, tax, depreciation and amortisation of goodwill, which is in line with other media buyouts.

The Broadcasting Commission of Ireland last year renewed Highland’s radio licence for another 10 years.

The takeover will have to be approved by the Competition Authority and Department of Enterprise, Trade and Employment, though no delay in approving the deal is expected.

SRH is also said to be interested in buying seven newspapers in the North owned by venture capital firm 3i.

The Local Press Group, which includes the Belfast-based News Letter, the Derry Journal and the Donegal Democrat, were bought by 3i for close to 50 million at the end of 2003. According to some reports, 3i could put the papers up for sale in the next few months.