Date set for Global's GCap acquisition

by Emma Barnett Media Week 15-May-08, 15:50

LONDON - GCap Media has announced that its £375m takeover by Global Radio is set to be completed by 6 June.

Following an EGM – convened to discuss Global’s 225pence per share offer – GCap concluded the deal should go through on that date.

From 6 June, Global Radio will have control of both companies, which since 31 March, the day the GCap board accepted the terms of Global’s takeover bid, have been operating as two separate entities.

At that point the Office of Fair Trading will have to assess whether there are any competition issues presented by the two companies coming together. If it thinks there are, it will be referred to the Competition Commission, which could then take up to a year to decide on any potential remedies.

Global's pursuit of GCap began with an offer at 190p a share in December, which was rejected by GCap's board. A second offer at 202p in March was also brushed off.

The takeover creates a commercial outfit with nearly half of the UK radio advertising market, combining Global's networks - Heart, Galaxy and LBC - under the same owner as GCap's Classic FM, Capital Radio and Xfm.