The €30 million takeover of Dublin station FM 104 by Scottish Radio Holdings (SRH) has been approved in principle by the Broadcasting Commission of Ireland (BCI). Emmet Oliver reports.
Several leading businessmen will earn large sums from the sale, which is expected to be concluded over the next few weeks.
The BCI's ownership and control guidelines do not allow stations to sell in the first two years after their licences have been awarded. This is to prevent companies from making a financial killing soon after getting their licence.
FM 104's licence was renewed last April and there was some concern among the parties that this might prevent the SRH deal going ahead. However, sale was approved for three reasons.
First, it was approved because there were no other applicants when FM 104's licence was renewed.
Second, the existing shareholders have been giving financial and practical support to the station for 14 years and are not new entrants to the market. Third, SRH had given commitments not to change the terms of the licence given to FM 104 last year.
SRH already owns Today FM and the latest acquisition gives it a sizeable presence in the Dublin market.
"It was a brave decision. It gives SRH added strength in the Dublin market," said Today FM managing director Mr Willie O'Reilly, who was heavily involved in the sale process and will sit on the new FM 104 board.
The managing director of FM 104, Mr Dermot Hanrahan, has yet to decide whether he will remain on as chief executive.
A spokeswoman said the BCI always made its decisions in principle and final details would be worked out in the coming days.
The main shareholders in FM 104 are: Mr McEvaddy with 38 per cent; concert promoter Mr Jim Aitken with 5 per cent; music industry director Mr Maurice Cassidy with 23 per cent; accountant Mr Pearse Farrell with 16 per cent; Mr Hanrahan with 10 percent; First Active chairman Mr John O'Callaghan with 3 per cent; and accountant Mr Greg Sparks with 3 per cent.
Based on these shareholdings Mr McEvaddy will make a profit of about €11 million; Mr Aitken about €1.5 million; Mr Cassidy some €7 million; Mr Farrell about €4.5 million; Mr Hanrahan €3 million; and Mr O'Callaghan and Mr Sparks will get almost €1 million each.
Several of the station's management also have shares in the station and they stand to earn about €500,000 each.
Yesterday was the final meeting of the current BCI board. The Minister for Communications, Mr Ahern, will shortly have to appoint a new board. This is not expected to happen for some days. It is not clear whether BCI chairman Mr Conor Maguire SC will be reappointed.
