One of Dublin's independent radio stations, FM104, has purchased a 20 per cent stake in Limerick's 95FM. The two stations did not disclose the purchase price but sources in the industry said it was worth approximately £500,000 (€635,000).

Some of the shareholders have decided to off-load part of their existing stakes, although which of them was selling was not disclosed. The existing shareholders are Golden Vale Marts, Mr PJ O'Riordan, Mr Alan McEvoy, Mr Liam Woulfe, Mr Martin Ryan and Mr Gay Mangan.

Separately, it was learned that Treaty Radio, the group which owns 95FM, was among parties which expressed an interest in acquiring one of the four potential radio licences for Dublin currently being advertised by the Independent Radio and Television Commission (IRTC).

FM104, owned by Capital Radio Productions Ltd, had already disclosed its interest in the Dublin licences. It is expected the IRTC will ask for formal applications for two FM licences for the Dublin city area, one FM licence for the city and county and one medium wave "special interest" licence.

In relation to yesterday's deal, the stations have approached the IRTC for approval for a change in the shareholding of 95FM. The final details of the deal are to be worked out with the IRTC over the next few weeks.

The chairman of 95FM, Mr Jim Deegan, said the station had received offers from several interested parties, but believed a "strategic partnership" with FM104 provided a mechanism to enhance the station. As part of the deal, some FM104 personnel will be working at 95FM, although a spokesman pointed out that the majority of the shareholding would remain in Limerick hands.