Star buys Capital FM

Fourth radio station in Star network

The Star’s publisher is buying its fourth radio station, Capital FM, for RM15 million in cash, to expand its stable consisting of 98.8FM, Red FM and Suria FM.

The company is buying 4 million shares, an 80% stake in station operator Capital FM Sdn Bhd, from its major shareholder Multimedia Distribution & Marketing Sdn Bhd, according to The Edge.

Multimedia Distribution and its partner ISY Holdings Sdn Bhd, the radio station licence owner, will each continue to hold 500,000 shares. The licence is from Feb 10, 2006 to Feb 9, 2016.

Star Publications said radio had potential for growth, as shown by the increase in radio’s share of advertising expenditure.
» The Edge