Emap, which has a portfolio of assets that includes the men’s magazine FHM, is preparing the ground for a likely £300m (€435m) takeover bid for SRH, which owns Scottish radio stations as well as newspapers.
SRH has been a consistent buyer of Irish media assets over the past four years, acquiring the Kilkenny People, the Nationalist & Munster Advertiser, the Tipperary Star, the Leitrim Observer and the Longford Leader. Its other Irish assets include Today FM, and the Dublin local station FM104. It has also acquired Cool FM and Downtown Radio in Northern Ireland.
Tom Moloney, Emap’s chief executive, and Gary Hughes, its finance director, are said to have asked advisers at Lazard to examine possible valuations and disposal opportunities for Score Press, the newspaper division of SRH, which houses its 44 local titles. Sources said intense interest in the assets was likely, with Johnston Press, Daily Mail & General Trust, Trinity Mirror, 3i and Archant expected to look closely at Score.
Emap has held off making a bid for the 72% of SRH it does not own because of its lofty share price, which closed on Friday at 991.5p, well above the 930p-a-share purchase price of its 28% stake in SRH last year.
Emap’s move comes as corporate activity elsewhere in the radio sector gathers pace.
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The £711m merger of Capital Radio and GWR is due to complete within weeks, while shareholders in Scottish Media Group, are to discuss a £100m bid for its Virgin Radio station this week from Lord Waheed Alli and private-equity firm 3i.
Chrysalis Group, the owner of the Heart FM station, is coming under pressure from its largest institutional shareholder, Schroder Investment Management, to find a merger partner.
One potential deal could involve acquiring the radio assets of Guardian Media Group.