UTV buys EUR 10m stake in LMFM

A number of business figures from the north-east are set to benefit from the sale of Drogheda-based station LMFM to UTV.

The Broadcasting Commission of Ireland (BCI) yesterday approved a substantial purchase of LMFM shares by UTV, although it declined to state how much equity was being purchased by UTV. Industry sources believe the purchase price is about €10 million.

The BCI said UTV's controlling interest in LMFM meant UTV now controlled more than 15 per cent of the State's commercial stations.

But a spokeswoman said the commission had been given assurances on this point and consequently was not delaying the transaction any further. However, the deal still has to be ratified by the Competition Authority.

Meanwhile, businessman Mr Denis O'Brien has taken full control of the Dublin youth radio station Spin 103.8 FM after buying out fellow shareholder Mr Michael Sherry of Molloy and Sherry Transport.

The purchase price was not disclosed, but sources said it would have cost Mr O'Brien €3-€4 million. The acquisition will also need the Competition Authority's approval. All media mergers must be referred to this body.

LMFM's franchise area covers counties Louth and Meath. A bid was also submitted in recent months by Scottish Radio Holdings (SRH), but sources said there was a "significant" difference between the SRH and UTV bids.

The majority of shares in LMFM are held by a firm called Kalacastle Ltd. The shareholders of Kalacastle are mainly local businesspeople. Among them is former Fyffes director Mr Eugene Caulfield, accountant Mr John McArdle, and travel trade executive, Ms Gemma Hiney. The station's chief executive, Mr Michael Crawley, is also a shareholder in Kalacastle.

LMFM is the largest local radio station outside Dublin, Galway and Cork. It broadcasts to a population in excess of 300,000 adults.

UTV already owns several media businesses in the Republic, including Dublin station Q102, Limerick's Live 95 FM and Cork's 96 FM and 103 FM. It also has a significant stake in the advertising business Bocom International.