Investors buy out two Cork stations

THE three main shareholders in the Cork radio stations 96FM and 103FM have staged a buyout, which values the company at £6 million.

The three shareholders - Mr Colm O'Conaill, Mr Alex McCarthy and Mr Jim O'Mahony - are being backed by the venture capital company Delta Partners. Delta has bought the other 18 per cent of Radio County Sound, the holding company for the two stations, which have a turnover of about £3 million.

The three men, who did not disclose their exact shareholdings, are paying an estimated £2.5 million to increase their stake from 40 per cent to 82 per cent. Delta is investing £1.65 million in a mixture of loan notes and equity, and expects to retain its equity in the company for up to eight years.

Mr O'Conaill is the managing director of 96FM, and was a key player in the Radio County Sound led New Ireland Broadcasting consortium which made a unsuccessful bid for the new national radio licence. Mr McCarthy is a Limerick businessman, while Mr O'Mahony is chief executive of the agri business group Golden Vale.

Cork 96FM claims to be the Republic's most successful local radio station with more than 50 per cent of the market share in the Cork area.