DMG Radio gains control of Essex Radio

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Monday 9 February 1998

DMG Radio has now acquired a controlling interest in Essex Radio plc following acceptances of its offer representing a further 19.5% of the company, taking its total interest to 60.5 %. Essex Radio is the first UK radio acquisition by DMG Radio.

The recommended offer, which values the company at £20.9m, has been declared unconditional, and will remain open for acceptance by the remaining shareholders until further notice.

By Friday (6th February) acceptances had been received from trusts and individuals representing an additional 9.3% of the shareholding. On Monday (9th February) the acceptance was received from Radiotrust plc, adding a further 10.2%.

DMG has been a shareholder in Essex Radio since 1994, and immediately prior to the offer held 41% of Essex Radio's equity. Under City Code rules it was required to make a formal offer for the company once its holding passed the 30% threshold.

Charlie Cox, Managing Director of DMG Radio, commented: "This is a significant day in the history of DMG Radio as a global radio operator and investor. The agreement now confirms DMG Radio as a significant operator in the UK Commercial Radio market, and follows its continuous support as an investor since the inception of the industry in 1973."

Essex Radio is the owner and operator of five local radio services operating in the Essex, Hertfordshire and East region. In aggregate, these services have a total potential reach of 3.15 million listeners with a range of principally music-based programming.

In the year to 30th September, 1997, Essex Radio reported consolidated profit before tax of £1.16 million (1996: £931,000) from turnover of £5.41 million (1996: £4.85 million). Shareholders' funds at that date were £3.07 million (1996: £2.48 million).

DMG Radio already has extensive overseas commercial radio operations. It currently owns over 50 commercial stations in Australia, is operational in Sweden, and is the largest shareholder in a consortium that was recently awarded the licence to operate the leading Hungarian national FM music station, Danubius. In the UK the group also has interests in the GWR Group and London News Radio.

Further information:
David Longman, DL Connections - Tel: 0171 580 0222 Mobile: 049 88 33 003
Charlie Cox, DMG Radio - 0171 938 6790