UBC offloads commercial division

by Isabella Piasecka Media Week 08-May-08, 15:00

LONDON - UBC Media Group, the radio production outfit, is to sell its commercial division to Global Traffic Network, (GNET), the international radio traffic and news provider.

UBC said today that it had signed a letter of intent to the sell the division for £15m, of which £1m will be in GNET shares. The acquisition is expected to close by the end of July, subject to approval by UBC shareholders and due diligence.

GNET has put down a deposit of £350,000 that will count towards the cash purchase price, once the transaction closes. It will be refunded if either UBC or GNET choose not to go ahead with the deal.

UBC's commercial division supplies traffic, news and entertainment information to approximately 250 radio stations in the UK, in exchange for commercials that are then sold to advertisers.

The stations currently served by the division have a non-duplicated reach of approximately 16.7 million weekly listeners, greater than GNET's combined reach in Australia and Canada.

William Yde III, chairman, chief executive and president of GNET, said the acquisition would "dramatically increase" the company's footprint in the UK.