THE original promoters of Radio, Ireland, the "Riverdance" group made up of Mr John McColgan, Ms Moya Doherty, Mr Denis Desmond, Mr Brian Molloy, Mr Robbie Wootton and Mr Joe Moreau, have reduced their shareholding in the new radio station. The reduction from 62.5 per cent to 55 per cent is to allow ICC Venture Capital take a 23.5 per cent in the station.

ICC is the replacement investor for Thomas Crosbie Holdings which earlier this year pulled out of a £500,000 investment for 15 percent of Radio Ireland. Originally it was expected that ICC would simply take up the 15 per cent allocated to Thomas Crosbie, but the state owned bank is now investing £1.18 million for a 23.5 per cent stake.

To accommodate the higher stake for ICC, the Riverdance group's holding has fallen from 62.5 percent to 55 per cent while the stake held by Mr Dermot Desmond's IIU company falls from 7.5 per cent to 6.5 per cent. Scottish Radio Holdings is the only investor whose shareholding remains intact with a 15 per cent stake.

ICC Venture Capital director Mr Tom Kirwan, who is joining the Radio Ireland board, said: "We were presented with a proposal by Radio Ireland, the funding required was a certain amount and we went in on that basis. There was a requirement for a replacement investor but also a need for more funding."

But by joining the consortium at such a late stage - with less than six weeks to the start of transmission - ICC is paying more for its stake than the other major outside investor, Scottish Radio. The price SRH is paying for its 15 per cent stake is understood to have been revised upwards somewhat from the £500,000 originally announced but ICC is still paying proportionately more for its 23.5 per cent stake than the earlier investors.

Mr Kirwan said: "Scottish Radio can provide technical assistance that a financial investor like ICC can't provide. That's why we're paying £1.18 million."