CLARE FM and two of its biggest investors have acquired a 55 per cent stake in fellow commercial radio station Kfm in a deal that values the Kildare-based broadcaster at about €7 million.

Clare FM has acquired a 30 per cent stake in Kfm directly while its managing director, Liam O’Shea, and leading shareholder, Gay Mangan, who was previously in the grocery wholesale trade, have bought the other 25 per cent between them.

Twelve shareholders in Kfm have earned about €3.8 million from the deal. These include chairman Billy Mulhern, programme director Noel Shannon and commercial director Pádraig O’Dwyer, who was also Kfm’s biggest shareholder. Government press secretary Eoin Ó Neachtain and former Kildare GAA football captain Glen Ryan also sold their shares. Both owned about 1 per cent of the business.

The deal was approved by the Broadcasting Commission of Ireland at a board meeting yesterday.

Kfm station manager Clem Ryan, who owns 12.5 per cent of the business, has taken over as chief executive. He said it would be business as usual for the Kildare station. “There will be no job losses and no changes to our service,” Mr Ryan said.

Kfm, which employs about 30 staff, went on air in 2003 and has been profitable since its inception. Mr Ryan said it had turnover last year of about €2.7 million.

Other major investors to retain their holdings in Kfm include Bray-based East Coast FM and businessman David Mongey, who each own 12.5 per cent. Horse trainer Dermot Weld, who owns 3.75 per cent, has also retained his share.

Earlier this year, Mr Weld put together a proposal to buy the 55 per cent shareholding before pulling back from the purchase.

"These are difficult times . . . I'll stick with the horses," Mr Weld told The Irish Times.

Kfm was one of a number of Irish radio stations that was close to being sold collectively last year to Scottish businessman Richard Findlay.

It is understood that Mr Findlay’s bid placed a valuation on Kfm of €10.5 million but the deal fell through.