Denis O'Brien's Communicorp Group has bought two radio stations in the Ukraine for an undisclosed sum.
The group already owns 31 commercial radio stations in six European countries, including 98FM and Spin 102.6 in Dublin. Communicorp is 100 per cent owned by Denis O'Brien.
A statement yesterday said the group had completed the acquisition of Radio Apelsin, a local radio station in Kiev.
It also acquired Nashe Radio, a national station based in the Ukraine. The second station is believed to have been the more expensive.
To purchase Radio Apelsin, Communicorp bought out the Ukrainian company operating the channel, TRK Divosvit. It also purchased all shares in ZAT Nashe Radio, which operates the other station.
Nashe Radio is the leading commercial radio network in Ukraine with a listenership of 30 per cent in a population of more than 47 million. The station broadcasts a mix of Ukrainian pop and rock music, news and entertainment, targeting a 25- to 45-year-old audience through a network of 29 transmitters nationwide. It has a licence until 2012.
Radio Apelsin broadcasts a youth-oriented contemporary pop music format, targeting 18- to 32-year-old listeners.
The Ukrainian advertising market is expected to grow at rates above the European average over the next few years, said Communicorp. Closer ties to the EU would also help, it said.
Lucy Gaffney, chairwoman of Communicorp, said: "This acquisition is the latest in our long-term strategy to become one of the leading radio operators in Europe. The radio stations we are acquiring have an excellent technical infrastructure, strong market positions and very good local management. We will assist these stations to grow further by providing local management support from our international programming and advertising sales resources."
Communicorp bought Apelsin from two corporate shareholders, one of which is a leading Ukrainian publishing group. It has acquired Nashe Radio from a number of corporate and individual shareholders, one of which is Alfabank Ukraine.
The last major deal by Communicorp outside Ireland was its 2004 purchase of Metromedia International, a company with radio interests in Bulgaria, the Czech Republic, Estonia, Finland and Hungary. It was reported at the time the purchase price was $14.25 million.
Recently Mr O'Brien spent nearly €56.5 million buying a 3 per cent stake in Independent News & Media, the company run and partly-owned by his long-standing business rival, Sir Anthony O'Reilly.
Mr O'Brien acquired 22.6 million shares in the publishing group.
