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Media Release
October 10, 1997
Broadcasting Division sold to DMG Regional
Radio
Rural Press Limited, the
largest publisher, printer and broadcaster to rural and
regional Australians, today announced the sale of its
Broadcasting Division to DMG Regional Radio Pty. Limited.
The subsidiary company that held the broadcasting assets,
Regional Broadcasters Australia Pty. Limited, was sold for a
total consideration of $88 million, less inter-company debt
due to Rural Press Limited.
The sale includes all of
the company's AM, FM and narrowcast licences in Western
Australia and Queensland. The two 50 per cent owned South
Australian radio stations at Port Augusta and Renmark are
not a part of the sale.
Rural Press Limited began
building the largest regional radio network in Australia in
August, 1993 with the purchase of radio stations at Bunbury,
Bridgetown, Narrogin and Katanning in Western Australia.
Further acquisitions followed in Western Australia,
including the radio stations at Albany and Kalgoorlie.
Significant regional acquisitions were made in Queensland,
with the purchase of the Maranoa network of stations in 1994
and the Cairns-Townsville-Mackay radio network in
1995.
The Managing Director of
Rural Press Limited, Mr. Brian McCarthy, said the sale was
important for the radio division and its staff, as the
network would fit better into a specialist radio group such
as DMG Regional Radio. He said the radio industry was at a
high in the cycle, and the sale was in the interests of
Rural Press Limited shareholders. The sale proceeds would
help with financing the company's recent Farm Progress
acquisition in the United States of America, and would allow
flexibility in pursuing other acquisition
opportunities.
For further
information please contact Mr. Brian McCarthy on 0245
704444.
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