Virgin Radio Holdings LTD has been acquired by TIML Golden Square Ltd for £53.2million.
Commenting on the proposed disposal, Rob Woodward, chief executive of SMG, said:
“I believe that £53.2 million represents a sound price for Virgin Radio and a good deal for SMG shareholders. The disposal of Virgin Radio is consistent with our overall strategy and the proceeds of the sale will allow us to return cash to shareholders, as well as further strengthen an already healthy balance sheet.
In the last fourteen months we have refocused SMG by disposing of non-core businesses, significantly reducing debt, delivering on KPIs and providing SMG with a strong platform for growth. Having successfully achieved our corporate turnaround, we are fully focused on our Scottish based broadcasting businesses, where we continue to see positive momentum. We are already delivering growth through our core Scottish assets and stv has continued to outperform the ITV network, both in national sales and in regional sales. We expect regional sales to continue with continued double digit growth in June.
I would like to wish the management team and all the employees of Virgin Radio the best of luck for the future and I am sure that the business will continue to prosper under TIML’s ownership.”