Radio Kerry to buy Clare FM

Clare FM is to be sold to Radio Kerry for €7.2 million. The board of Clare FM has recommended the sale to its shareholders, including the Diocese of Killaloe, Minister of State Tony Killeen and the Galvin family, who own the Clare Champion newspaper.

The offer by Radio Kerry for the station values its 360,000 issued shares at €20 each. They were purchased at €1.27 in the late 1980s.

The Galvin family is to share €1.02 million from the sale while Clare FM chief executive Liam O'Shea is set to receive €407,300.

Mr Killeen is on track to be paid more than €2,000 as a result of the sale, while the Diocese of Killaloe will scoop €188,000. Gael Linn and Kerry Foods will each receive €600,000 from their shareholdings, while Clare GAA is due €100,000.

During the 15-year period of their investment, the shareholders have never received a dividend.

The move signals further expansion for Radio Kerry after its purchase of Shannonside FM and Northern Sound Radio in 2005. Clare FM employs 30 staff and it is not known if the proposed deal provides for an employee bonus.

In a letter to shareholders, the chairman of Clare Community Radio Holdings plc, Michael Evans, said the company is recommending acceptance on the offer, which is conditional on 95 per cent shareholder approval.

In the letter, Mr Evans said the sale should be complete by the end of March 2008.

Shareholders have until December 21st to accept or reject the offer.

Other large shareholders to benefit include the company chairman and president of the Ennis Chamber of Commerce, Mr Evans, who is set to receive €350,000 from his 17,500 shares.

The proposed sale comes against the background of growing profits and listenership for Clare FM. The annual returns for 2006 show that the company increased its annual profits to €240,000 on a turnover of €1.9 million.

The profit achieved last year results in accumulated profits of €694,000, while the company's balance sheet confirms that it has equity of €1.23 million. The company's wage bill last year was €966,000.

Clare FM's most recent JNLR radio survey showed a 4 per cent increase in market share. The sale of the station will be subject to the approval of the Broadcasting Commission of Ireland and the Competition Authority.