Dublin accountant Mr Ossie Kilkenny has moved to sell his one-third stake in Dublin youth radio station Spin FM to the remaining shareholders, including Mr Denis O'Brien.
In recent weeks, the 33 per cent stake has been offered to Mr O'Brien's Radio 2000 Ltd and Mr Michael Sherry, the owner of Molloy & Sherry Transport Ltd. The asking price has not been disclosed.
Mr O'Brien and Mr Sherry are expected to each hold a 50 per cent stake if the transaction is approved. The share sale will require the approval of the Broadcasting Commission of Ireland (BCI) and the Competition Authority. The board of the BCI is expected to consider the issue later this month.
As part of a shareholders' agreement, any stake must first be offered to existing shareholders. Mr Kilkenny was not available to comment on his reasons for selling the stake yesterday. It is believed he is likely to at least recover his investment in the station, which went on air in April 2002.
Another shareholder, London-based music company Ministry of Sound, exited last year.
The station is aimed at 18- to 34-year-olds and, according to 2003 JNLR figures, it achieved a market share of 2 per cent. The company behind the station, Maypril Ltd, had accumulated losses of over €2 million for the period to December 2002.
A BCI review of the station last year complimented the management and staff but said revenue generation had been slightly disappointing.
The station was embroiled in controversy when it was awarded its licence in 2000. A losing consortium, Storm FM, objected. But, in 2001, the Supreme Court rejected an appeal by Storm.
