ARN, the radio chain half owned by Australian Provincial Newspapers, has extended its network with the acquisition of two stations in Adelaide for 29 million Australian dollars (£14.5 million).
Half of the acquisition cost will come from APN, with the balance, for their partner in the joint venture, the American group, Clear Channel Communications.
APN itself is 25 per cent owned by Independent Newspapers, with a further 22 per cent owned by an O'Reilly family trust.
The two new stations in Adeaide are 5ADEM, the No 1 local station, and 5DNAM. Both operate a format similar to existing ARN stations which are targeted at the 25-34 age group.
The two stations have shown strong growth in the past two years, with profits of $1.9 million in 1994, followed by $3.2 million in 1995 and an expected $3.2 million this year.
APN said that the acquisition would be earnings enhancing in the first year.
APN has invested more than £90 million in commercial radio in Australia in the past three years and currently has a chain of FM and AM stations in Sydney, Melbourne and Canberra.
Earlier this year, the APNClear Channel joint venture expanded into New Zealand when it joined with another Independent Newspapers associate, Wilson & Horton, to buy the state owned Radio New Zealand Corporation for £40 million.
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