SMG sells Virgin Radio
- Published: 02 June 2008 08:54
- Author: Rob Shepherd
- More by this Author
- Last Updated: 02 June 2008 08:54
SMG has sold Virgin Radio to Indian media conglomerate Bennett, Coleman & Co. for £53.2m in cash.
Bennett, Coleman, publisher of the Times of India paper, bought the broadcaster and its subsidiaries in the UK through wholly-owned unit TIML Golden Square.
SMG had previously put Virgin Radio up for sale as part of its plan to sell off non-core assets.
TIML will manage the station along with Absolute Radio, and invest £15m in "developing and re-launching the brand" over the next few months, according to local reports.
The deal is expected to complete by the end of the month.
Global Radio, Absolute Radio and UTV Media were also reported to be in the running for Virgin Radio.
Bennett, Coleman also has a presence in television and operates FM radio stations in India.
SMG chief executive Rob Woodward said: "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."
