SMG's radio sell-off plans back on
BROADCASTER SMG’s plans to offload Virgin Radio today appeared to be back on track after it confirmed receiving interest from a number of potential bidders.
The owner of Scottish television group STV and presenter Chris Evans’s former company Ginger Productions said it was now “exploring its options” for Virgin. The radio station was initially put up for sale last year before SMG was forced to put plans on hold amid the credit crunch.
It is thought to have hired investment bank Jefferies International to lead the sale process after overhauling its finances and raising £95.1million in a rights issue.
Suitors said to be in the running include Guardian Media Group, private equity firm Vitruvian and Global Radio, the outfit chaired by former ITV boss Charles Allen, which is also stalking Classic FM parent GCap Media.
The group postponed Virgin’s sale last September after offers reportedly came in below its £80million target price.
Appetite for a buyout of Virgin had waned in tighter credit markets but SMG has said the rights issue and recently secured loan arrangements would allow it to sell the station from “a position of strength”.
