The deal represents a victory for SRH shareholders, with the company's board holding out against a concerted bid by Emap to acquire it. The price of 1,088p a share represents a 17% premium on the average middle market closing price of SRH shares in the year to March 31.
It will see Emap take control SRH's network of 22 radio stations in the UK and the Republic of Ireland, in a move that Emap says will help sell advertising by providing media agencies with a "one-stop shop" from which to source national advertising.
It will also help deflect the impact of fragmentation of radio audiences by giving it strong brands across different platforms allowing it to possibly extend its main Kerrang!, Magic and Kiss FM radio brands.
Tom Moloney, chief executive of Emap, said: "Radio is a good business, with strong medium-term growth prospects. To compete more effectively, scale of audience and infrastructure will be increasingly important. This transaction enables us to create the highest quality independent local radio business, reaching all of the UK's major conurbations and delivering a strong position in the Republic of Ireland."
Emap, which presently owns around 27% of SRH, saw its share price fall by as much as 5.5p this morning to 794p, a fall of 0.69%.
At the same time, Johnston Press, the regional newspaper group, is to buy 45 local weekly newspapers, which Emap will acquire as part of the SRH deal.
Johnston is paying £155m for the division, known as Score Press, which includes newspapers in Scotland, Northern Ireland and the Republic of Ireland, such as the Galloway Gazette.
David Goode, chief executive of SRH, said: "Score Press is a highly profitable and well-run portfolio of weekly newspapers. It represents a very valuable asset and a good fit with Johnston Press's extensive newspaper interests. The offer delivers significant value for our shareholders, enabling them to realise a premium in cash."
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