Broadcaster Ulster Television has agreed to buy UK radio company Wireless Group for £98.2m sterling.
The offer, at 91 pence per share, represents a premium of over 10% over Wireless's closing price of 82.5 pence on April 18, the last dealing day prior to the date on which UTV announced it was in talks with the company.
The offer was also said to include a share alternative for shareholders wanting to maintain exposure to the growing UK radio market. It was finally agreed on Saturday and announced to the Stock Exchange this morning.
Ulster Television is the owner of the Northern Ireland ITV franchise, and has been expanding into the radio sector, including a new commercial radio licence in Belfast. It also owns several radio stations in the Republic, including Q102 and Limerick's Live 95FM.
Wireless Group, which owns TalkSport radio, was set to go public earlier this year in a management buyout orchestrated by CEO Kelvin MacKenzie, but the deal fell through when private equity firm Veronis Suhler Stevenson pullout out.
TalkSport's audience hit an all-time high with a weekly reach of nearly 2.5 million listeners in the three months to March 31, according to the latest UK data. That puts it ahead of Virgin Radio as the second largest UK commercial station behind Classic FM.
'We believe that this acquisition will offer exciting opportunities for the continued expansion of UTV's business by providing a cornerstone for a broader radio strategy in Great Britain,' UTV's chief executive John McCann said.
