TMG increases interest in Sky Radio to 85%
By acquiring the interest of the non-strategic financial shareholders in the Sky Radio Group, the Telegraaf Media Groep (TMG) has increased its interest in the Netherlands' most successful group of commercial radio stations from roughly 28% to 85%.
Veronica Holding and management hold the remaining 15%.
At the time of the acquisition of Sky Radio Group in April of last year, TMG declared that it had an option on the shareholding of Sky Radio's financial parties. TMG also indicated that it would exercise this option if its total market share in paid circulation of daily newspapers in the Netherlands were to drop below 25% or if Dutch cross-ownership legislation were to permit it. On 13 July 2007, the Provisional Media Concentration Act [Tijdelijke Wet Mediaconcentraties] came into effect, making this step by TMG possible.
The acquisition concerns the transfer of legal property. In financial terms, TMG has already included Sky Radio as a group company in its consolidated financial statement for 2006. The bank loans, extended to TMG and Sky Radio Group at the time of the acquisition, will have been fully repaid by the end of July this year.
Ad Swartjes, CEO of TMG says: ‘Liberalisation of cross-ownership legislation in the Netherlands means that we are finally entitled to acquire a majority share in Sky Radio Group. This is the step that will finally allow all forms of collaboration between Sky and the rest of our enterprise to come to full flourishment. For example, as of next week, our Online Sales department will be taking care of advertising sales for Skyradio.nl, RadioVeronica.nl and Classicfm.nl. This provides much additional value, significantly extending the reach of TMG within the various target groups.’