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NEWS: MILESTONE GROUP PLC SELLS STAKES IN THREE LOCAL RADIO STATIONS TO RAISE 2M by GRANT GODDARD

www.grantgoddard.co.uk February 2006

Milestone Group plc is to sell three of its four local radio stations in deals that will raise 2m, following a comprehensive review of ongoing strategy that had been announced last June. The sales are subject to the approval of shareholders at an Extraordinary General Meeting to be held on 17 February. Milestones 54% holding in 'Kestrel FM' is to be sold to Tindle Radio Limited for 594,000 cash and a loan assignment of 110,000. Milestones 55% holding in 'Kick FM' will be sold to Tindle Radio for 490,000 cash and a loan assignment of 168,000. Milestones 52% holding in 'Rugby FM' is to be sold to CN Radio Limited for 644,961 in cash. The three stations have a combined turnover of 1.3m, though only Rugby FM showed a profit in the last financial year. Milestone chief executive Andy Craig said: "Kick FM, Kestrel FM and Rugby FM are all radio stations which Milestone has operated for some time and, whilst successful and popular amongst their audiences, their continued operation by the Company has taken up considerable management resource. This proposed reorganisation will enable the Company to focus on exploiting the more significant growth potential identified within its wholly owned local media assets. Somethin Else director John Sanderson has been appointed as non-executive chairman of Milestone, following the decision of current chairman Julian Blackwell to resign in order to concentrate on his other business interests. The company has arranged an interim 200,000 loan from Manchester Securities Corporation, which will be paid off once the proceeds of the station sales have been received. The sales leave Milestone with one remaining radio asset, Oxfords 'Passion FM', which achieves a 3% share in a market dominated by BBC stations and 'Fox FM'. Milestone also owns Oxfords Courier Newspapers, 'The Basingstoke Observer', and local Oxford TV service 'Six TV'.

[First published in 'The Radio Magazine' as 'Milestone Sells Three Stations', #722, 8 February 2006]

Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of experience in the broadcasting industry, having held senior management and consultancy roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at http://www.grantgoddard.co.uk

News: Milestone Group plc Sells Stakes In Three Local Radio Stations To Raise 2m 2006 Grant Goddard

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