A bid by UTV for the local station LMFM has been submitted to the Broadcasting Commission of Ireland (BCI) for consideration, it has emerged.
The BCI board will meet this Monday to consider the change of ownership application. The purchase price could be between €8 and €10 million.
If the purchase were approved, it would represent a significant increase in UTV's exposure to the Irish radio market. It already owns Dublin's Q102 (formerly Lite FM), Cork's 96 and 103 FM, and Limerick's Live 95 FM. The company has a large stake in the advertising business Bocom International.
The company recently received a setback in the Republic when its application for the new alternative rock licence in Dublin was not successful. The LMFM negotiations have been ongoing for some time. Early interest in the station was expressed by Scottish Radio Holdings (SRH), but the purchase price was too high, according to SRH sources.
Recent accounts show the company that owns LMFM - Independent Broadcasting Corporation Ltd - reporting accumulated profits of €389,153 for the year to August 31st, 2003, down slightly from the year before. The company's net assets were valued at €453,515.
The majority of shares in the company are held by a firm called Kalacastle Ltd. Its shareholders are mainly local businesspeople. The station's chief executive, Mr Michael Crawley, is also a shareholder in Kalacastle.
LMFM is the largest local radio station outside Dublin and Cork. It broadcasts to a population in excess of 300,000 adults, mainly in Louth and Meath. It operates two services, targeting the 25-plus age group during daytime broadcasting while focusing on the 15 to 30 age group from 9 p.m. onwards.
The main Dublin stations can also be picked up in LMFM's franchise area. While these stations cannot take advertising from the north-east region, their presence in the area poses a challenge for the station.
Meanwhile, it is understood the BCI is also considering a proposal by businessman Mr Michael Sherry to sell his stake in Spin FM. The most likely purchaser of the shares is Mr Denis O'Brien's radio group Communicorp Ltd.
