Scottish Media Group has sold its 27.8% stake in Scottish Radio Holdings to Emap in anticipation of consolidation in the radio market following the arrival of the new communications bill. Emap paid £90.5m for the stake in the radio group, which owns the Forth and Clyde radio brands amongst others. "We believe that there will be opportunities for consolidation within the UK radio sector now that the communications bill has been enacted. Against this background, we regard the stake in SRH as an attractive strategic asset," said Emap's finance director, Gary Hughes.
The acquisition by Emap follows the sudden departure of Tom Schoonmaker, chief executive of Emap Performance, which houses Emap's radio, television and music magazines, at the beginning of the year.
Andrew Flanagan, chief executive of Scottish Media Group, said: "We have explored all the options for the stake and it is clearly now better for our shareholders that we sell the shareholding, reduce our debt and move on.
"We continue to focus on operating and developing our profitable, strong brands in radio, television, outdoor and cinema across national markets."
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