Global Radio May 2009

On 22 May, our client Global Radio signed and exchanged agreements to sell eight of its radio stations in the Midlands region (the "Midlands Stations") to private equity house LDC for an undisclosed amount. The transaction is subject to OFT approval of LDC as the new owner of the stations following a public consultation process and is expected to complete at the end of June.

Global Radio, owner of established brands such as Heart, Galaxy, Capital FM, LBC and Classic FM, is the UK's largest commercial radio group having acquired GCap Media plc in 2008. Global's acquisition of GCap was approved by the OFT in August 2008 subject to the divestment of the Midlands Stations, which included high profile local radio stations such as BRMB in Birmingham and Heart 106 in Nottingham.

Canaccord Genuity initiated a disposal process in August 2008, although the economic backdrop, together with the regulatory-driven nature of the disposal, made this an extremely challenging transaction. Canaccord Genuity's role in maintaining regular dialogue with the regulators and running a process which retained competitive tension until the very end were key to achieving a successful conclusion to the transaction.

LDC's offer was fronted by Phil Riley, the former CEO of Chrysalis Radio (which Canaccord Genuity'sold in 2007) and one of the most experienced radio operators in the UK. Phil and his team will manage the Midlands Stations for LDC.

As part of the transaction, Global Radio will continue to undertake national sales for the Midlands Stations by way of a Sales Agreement, expected to generate significant additional value for Global. In addition, Global will provide Heart and Gold brand licences to LDC to enable the relevant Midlands Stations to continue to operate under their current brand names. Global will also provide certain technical and support services to the Midlands Stations via a Transitional Services Agreement. These documents were negotiated and agreed alongside the customary transaction documents.

Canaccord Genuity acted as sole financial advisor to Global Radio.