Times of India group buys Virgin Radio in UK for $105 million

02 June 2008

Mumbai: Newspaper publisher Bennett Coleman and Company, which owns the world's largest-circulated English newspaper, The Times of India, has acquired Virgin Radio Holdings from UK's Scottish Media Group (SMG) for £53.2 million ($105 million).

The acquisition was made through TIML Golden Square, a unit of Bennett Coleman & Co.

Glasgow-based SMG Plc, Scotland's largest commercial media company and one of the three commercial radio licensees in Britain, said the sale will bring net proceeds of around 48.7 million pounds.

SMG said the sale is part of the company's plan to increase TV production, expand internet offerings and build on its relationship with ITV Plc, the UK's biggest commercial broadcaster.

SMG operates two ITV franchises in Scotland. The company's STV television unit has continued to outperform the ITV network, in national and regional sales, SMG said today, adding that it predicts regional sales to have ``continued double-digit growth in June.''

"The disposal of Virgin Radio is consistent with our overall strategy and the proceeds of the sale will allow us to return cash to shareholders, as well as further strengthen an already healthy balance sheet," Rob Woodward, chief executive for SMG, said.