Chrysalis switches off from radio

Chrysalis says it is looking at all options

Media group Chrysalis has sold its radio business to an investment company headed by former ITV boss Charles Allen for £170m.

The sale, which includes the Heart station, follows a strategic review of Chrysalis announced earlier this year.

Profits from the sale to Global Radio are set to be about £95m and shareholders are expected to see between £90m and £100m, the firm said.

Chrysalis is the third largest commercial radio operator in the UK.

The firm's group chief executive Richard Huntingford said the sale was "good value for shareholders".

Separating the radio business from the company leaves its music publishing arm as its sole business interest and allows more focus to build its position in the market, the company said.

In addition, Chrysalis said the simplified structure of the continuing group would enable cost savings of about £3.5m in corporate overheads to be achieved over the next 12 to 18 months.

Mr Allen, who stepped down as chief executive from broadcaster ITV last year amid falling revenue and low viewing figures, is chairman of the new company.