Analysts predicted this week that Emap Radio would be sold as a whole and that a non-quoted player or a private equity bid was likely to succeed, perhaps ruling out GCap.
GMG chief executive Carolyn McCall last week admitted her company would be considering Emap’s radio assets and GCap Media chief executive Ralph Bernard said competition regulations were unlikely to affect the sale of Emap’s London stations to the owner of a rival licence.
Paul Bates, an analyst at Charles Stanley Securities, expects a private company to buy the stations.
“You can’t discount anyone at this stage, but I would find it hard to see any existing quoted players making a move,” he said. “Global Radio has deep pockets and I don’t think they’re going to let it go to another private equity player.”
Both Global Radio and GMG would be able to make savings by combining their existing assets with those they might buy from Emap.
“The flipside with Emap though is that it might pull in an international buyer,” added Bates.
“Emap is the second largest group in the UK and assets like that don’t come on the market very often, so an overseas buyer might see it as an opportunity.”
Although no price tag has been placed on Emap Radio, it is thought to be worth up to £250-300m excluding the Irish stations, which were sold to Communicorp Group last month for £135m.
GMG chief executive Carolyn McCall last week admitted her company would be considering Emap’s radio assets and GCap Media chief executive Ralph Bernard said competition regulations were unlikely to affect the sale of Emap’s London stations to the owner of a rival licence.
Paul Bates, an analyst at Charles Stanley Securities, expects a private company to buy the stations.
“You can’t discount anyone at this stage, but I would find it hard to see any existing quoted players making a move,” he said. “Global Radio has deep pockets and I don’t think they’re going to let it go to another private equity player.”
Both Global Radio and GMG would be able to make savings by combining their existing assets with those they might buy from Emap.
“The flipside with Emap though is that it might pull in an international buyer,” added Bates.
“Emap is the second largest group in the UK and assets like that don’t come on the market very often, so an overseas buyer might see it as an opportunity.”
Although no price tag has been placed on Emap Radio, it is thought to be worth up to £250-300m excluding the Irish stations, which were sold to Communicorp Group last month for £135m.
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