An investment vehicle backed by Irish businessmen Denis Brosnan, JP McManus and John Magnier is believed to be in exclusive talks to buy Chrysalis Radio in the UK.
Lydian Capital, a Geneva-based investment group founded by Mr Brosnan, is understood to be on the verge of buying the UK radio group for about £175 million (€259 million). Sources suggested that the deal could be announced by the end of this week.
Michael Tabor, a leading investor in the Coolmore Stud operations in Co Tipperary, is also a backer of Lydian.
Australian investment group Macquarie is believed to have been an underbidder for the radio stations.
Chrysalis Group, a listed company in London also involved in the music business, announced its intention to carry out a strategic review of its radio assets in February.
A spokesman for Chrysalis declined to comment on the review process, except to say that the company hoped to conclude it by the end of this summer.
Chrysalis is the third-largest commercial radio operator in the UK behind GCap Media and Emap. It owns Heart, the number one light radio station in Britain and the biggest commercial station in London.
It also controls Galaxy, the UK's most listened-to young adult network, and the speech-based LBC stations.
The sale process is being handled by Hawkpoint Partners in London.
The decision to sell is fuelled by a round of consolidation within the radio industry and declining advertising revenues. Online ads now generate more revenue in the UK than radio.
In the year to the end of February, Chrysalis's radio revenues declined by 9 per cent to £30.1 million. Its earnings before interest, tax, depreciation and amortisation fell to £3.4 million from £5.1 million a year earlier.
Chrysalis said it expected a "flat revenue out-turn" in radio for the year as a whole.
On a more upbeat note, revenues from its fledgling digital radio operations rose by 79 per cent during the six-month period.
It is understood that a number of bid proposals were received for Chrysalis Radio in May but that all of the offers fell short of the £200 million valuation that is believed to have placed on the business.
Lydian was recently pipped to the post in its bid to acquire the Jurys Inn chain of budget hotels. The group lost out to Quinlan Private, which secured the Inns with a bid of €1.165 billion.
Lydian is reported to have lost out by just €10 million. The group has traditionally focused on health, leisure, and nutrition and consumer products but is thought to be keen to expand into other sectors.
