Local Radio Chairman Makes Counter-Offer For Outstanding Shares
April 10, 2009 at 5:22 AM (PT)
After UKRD renewed its call for shareholders of U.K. station owner THE LOCAL RADIO CO. this week, LOCAL RADIO's own Chairman, ANTHONY GUMBINER, issued his own 1.8 million pound, 2.5p/share offer for the company's outstanding shares. GUMBINER's offer, through his HALLWOOD FINANCIAL LTD. firm, is a 66.7% premium over LOCAL RADIO's closing price on APRIL 8th and a 25% premium over the 2p/share, 1.44-million pound offer made by UKRD. UKRD owns 13.5% of LOCAL RADIO, while HALLWOOD owns 28.26% of the company.
LOCAL RADIO has also sold the JAZZ FM digital station brand to its former Chairman RICHARD WHEATLY for one pound and assumption of 195,510 pounds of debt to GMG, which licensed the JAZZ FM brand to an LOCAL RADIO subsidiary last OCTOBER. The sale was first rumored in JANUARY.