In the first acquisition of a British media outlet by an Indian company, The Times of India Group has bought Virgin Radio for £ 53.2 million.
LONDON: In the first acquisition of a British media outlet by an Indian company, The Times of India Group has bought Virgin Radio for £ 53.2 million.
Launched in 1993 and currently owned by Scottish broadcaster SMG, Virgin radio has been bought by TIML Golden Square Ltd, a wholly owned subsidiary of The Times of India Group.
The new owner has announced plans to spend £ 15 million on re-branding away from the Virgin name.
TIML, which owns radio stations in India, has 90 days from the completion of the sale to re-brand the acquisition.
The new station will be managed by Absolute Radio, owners of JACK FM and FM107.9 in Oxford, and a team comprising media and entertainment specialists from TIML.
Radio industry sources said that TIML will not be able to use the Virgin Radio brand because prominent British entrepreneur Richard Branson's group has a joint venture with another Indian media house.
But TIML is likely to retain the option of continuing to use the Virgin Radio name in the UK, for a license cost of eight million pounds.
Rob Woodward, chief executive of SMG, said: "I believe that 53.2 million pounds 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.
"I am sure that the business will continue to prosper under TIML's ownership," Woodward said.
A P Parigi, managing director & CEO of TIML, said: "Now is a great period to be entering the UK market and the opportunity to acquire a valuable radio asset couldn't have come at a better time."
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