SYDNEY: Macquarie Bank subsidiary Regional Media has forked out $193.5 million to strengthen its national radio network with the purchase of 57 radio stations from DMG Regional Radio.
The purchase brings Macquarie’s total Australian regional radio network to 93 stations.
The assets include 57 predominantly music-based stations in 29 regional markets throughout NSW, Queensland, Victoria, South Australia and Western Australia.
DMG paid $169 million for the stations in September 1996.
Regional Media will incorporate the stations into a proposed unlisted media investment vehicle, which will also include RG Capital Radio Limited.
Former chairman of DMG Regional Radio Tim Hughes will be executive chairman of as yet unnamed group. The proposed media group will also seek investments in other media assets.
"The signing of this agreement with DMG Radio Australia is the next step in fulfilling this strategy," Hughes said. "Regional Media will be a new and vibrant player in regional media in Australia. Importantly the transition into a new radio group requires little day-to-day interruption and all stations in the group will continue under the same local management and formats.
"We also believe we will be in a stronger position to compete for national sales against other media such as television and newspapers."
The deal leaves DMG with just 11 stations, located mostly in metropolitan markets.
The sale will be a welcomed cash injection for DMG, which has spent $262 million in the past 12 months acquiring radio licences for the national expansion of its youth brand Nova.
The sale of the stations to Macquarie is set to be finalised by 10 September.
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