30th Jun 2016 12:16
LONDON (Alliance News) - Media conglomerate News Corp on Thursday said it has agreed a GBP220.3 million takeover of Wireless Group PLC, the company formerly known as UTV Media PLC.
UTV changed its name to Wireless Group in February following the sale of its UTV Television division to broadcaster ITV PLC. This left Wireless with radio assets, including talkSPORT.
News Corp, controlled by mogul Rupert Murdoch, will pay 315.00 pence per share in cash for Wireless Group, a 70% premium to its closing price on Thursday. Wireless shares were up 70% on the news to 313.75p.
News Corp said Wireless appears to be a good strategic fit with its existing assets, including an audience crossover with tabloid newspaper The Sun, and will broaden its range of services in the UK, Ireland and internationally.
"The proposed investment is a clear sign of our commitment to, and belief in, the United Kingdom as a place to do business successfully and profitably," said Robert Thomson, News Corp's chief executive.
"We plan to leverage Wireless' portfolio of radio and digital audio sports rights, including the Premier League, in the UK, Ireland and beyond, through News Corp's digital platforms. We believe the businesses together can be far more than the sum of their parts," he added.
"This is an excellent outcome for all Wireless stakeholders. Shareholders receive an immediate and certain cash value for their shares which not only represents a very significant premium to the current share price, but also fully recognises the long-term prospects and growth potential of Wireless," said Richard Huntingford, Wireless's executive chairman.
By Sam Unsted; [email protected]; @SamUAtAlliance
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