The Sale and Purchase Agreement was due to have been signed last Friday (17 October), for an initial cash payment of £11m. The transaction was meant to complete by 15 November, with further additional payments of up to £5.5m to be paid dependent upon the Commercial Division achieving certain turnover targets.
However, according to a trading update issued by UBC, the "current market conditions mean that a deal in the form originally envisaged will not be completed".
Conversations between UBC and GTN are continuing and could still lead to a deal between the companies, but no guarantees are being given at this stage. A further statement will be given in due course.
John Quinn, UBC chief operating officer, said: "Due to ever worsening trading conditions in their markets and ours, there is a certain amount of nervousness that prevented a deal being done. From our side, this negotiation has been a distraction. There are still conversations going on but moving forwards its business as usual."
Ahead of its interim results announcement for the half-year to 30 September, UBC expects to be 15% down on the same period in the previous year.
Last week, UBC signed a two-year deal to supply traffic and travel bulletins to all GCap and Global radio stations. The seven-figure deal begins on 17 November and will give advertisers access to 67% of the UK's commercial weekly radio audience.
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