"Times Group buys UK’s Virgin Radio for Rs 448cr"

Sudeshna Sen LONDON

IN ITS first-ever overseas acquisition in the media space, The Times Group has acquired Virgin Radio Holdings Ltd and its subsidiaries in the UK from SMG Plc for a consideration of £53.2 million (around Rs 448.4 crore)

Virgin Radio, a music channel which operates under an FM licence in London and an AM licence in the rest of the UK, was acquired by TIML Golden Square Ltd, a wholly-owned subsidiary of Bennett Coleman & Company Ltd (BCCL), owners of leading media brands in India such as The Times of India and The Economic Times.

Virgin Radio, after a period of transition, will not retail the Virgin brand — giving it the freedom to develop its own mix of music and entertainment, without the branding parameters outlined by Virgin Enterprises. TIML, which will manage the station along with Irish company Absolute Radio, will invest £15 million in developing and re-launching the brand over the next few months. Virgin Enterprises will retain the brand for its own global radio strategy.

The acquisition is being seen as a key entry point into the vibrant British radio market as the new owners have closed the deal at almost a quarter of what SMG paid in 2000 — £225 million — to acquire the radio station. “This decision was arrived at collectively only after we all carefully considered the various options. I wish TIML all the best with their new radio brand,” said Richard Branson of the Virgin Group.

“I believe that £53.2 million represents a sound price for Virgin Radio and a good deal for SMG shareholders. I would like to wish the management team and all the employees of Virgin Radio the best of luck for the future and I am sure the business will continue to prosper under TIML’s ownership,” said Rob Woodward, chief executive of SMG Plc.

By autumn this year, the new owners will develop, working with Absolute Radio, a new music and entertainment brand, building on the work already achieved by the award-winning team at Golden Square.

“Now is a great period to be entering the UK market. We are pleased to be working with a great team of UK-based radio experts, Absolute Radio,” said A P Parigi, chief executive of TIML.

The BCCL group is India’s leading media conglomerate and owns a bouquet of media brands, with a large presence in radio, television, internet and entertainment.