A major re-structuring of the struggling country and western radio station Country 106.8 has been approved by the Broadcasting Commission of Ireland (BCI).
The station, which was almost sold to Scottish Radio Holdings last year, has found it difficult to make an impression in the Dublin market. According to the most recent Join National Listenership Research (JNLR) figures, it had a 2 per cent share of the Dublin adult audience last year.
Under the changes approved this week by the BCI, two new shareholders will come on board. Mr Gerry Carron, a director of East Coast FM, is believed to be taking a 30 per cent interest, while businessman Mr Peter Norton is taking a 15 per cent stake.
One of the leading shareholders in the station, Mr David Harvey, refused to comment on the changes yesterday, saying the deal had yet to be signed off.
But it is believed Mr Harvey, Mr Paul Coulson of Yeoman International and other existing investors will retain a 55 per cent share in the station, with the rest taken up by Mr Carron and Mr Norton.
According to figures given to the BCI, Mr Carron is investing €300,000 for his 30 per cent stake, while Mr Norton is investing 15 per cent. The Yeoman group, are investing another €100,000 to bring their stake to 27 per cent. When the re-structuring is complete Mr Harvey will be left with a 14.2 per cent stake.
The deal also heralds closer co-operation between Country and East Coast FM.
Country already uses some of East Coast's studio space in Bray, Co Wicklow, although the station must continue to broadcast its signal via Three Rock Mountain.
The BCI also approved the appointment of Mr Padraig O'Dwyer, who has spent time working in East Coast, as commercial director for a one-year period and the appointment of a programme director with experience in country and Irish music. Approval was also given for changes to the station's board and staff structure.
The two stations most recently licensed in Dublin - NewsTalk 106 and Country - have both struggled to reach listeners.
According to the last JNLR figures, NewsTalk had an effective market share of zero in the Dublin area. The station also had to raise fresh funds, although Capital Radio Productions, which is a shareholder in NewsTalk and owns FM 104, refused to inject fresh funds.
