Chrysalis Holds Talks on Radio Station Sale

By JON REES

CHRYSALIS is in talks with trade buyers and private equity firms about the Pounds 200 million sale of its radio assets, including Heart and Galaxy radio stations.

It will update the City tomorrow on the progress of its review, announced in February.

Company sources suggest trade buyers have been in discussion about acquiring the radio assets, even though the sector is suffering weak advertising demand.

Groups including SMG, which owns Virgin Radio, and GCap, which owns Capital and Classic FM, are viewed as unlikely buyers since each is suffering in the market downturn.

UTV, owner of Talksport, has looked at a possible offer but some analysts now believe Chrysalis will retain its radio business.

The company is expected to report a difficult first six months to the end of February, with radio advertising down nine per cent.

It is likely to be only just in profit and the surplus for the full year to August is forecast at Pounds 5.3 million, compared with Pounds 5.8 million last year.

Heart FM, whose presenters include Jamie Theakston and Harriet Scott, lost market leadership in London to Magic in the latest audience figures for the first quarter of the year.

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