KPMG seeking Guardian radio buyers

GUARDIAN Media Group has appointed advisers at KPMG to sound out buyers for its radio division. In what would mark the latest stage of consolidation in the radio market, the publisher of the Guardian newspaper and Auto Trader is expected to listen to offers in excess of £120m.

Chrysalis, which owns the Galaxy dance stations, had a bid of £100m rejected as too low last month. Kiss FM owner Emap is understood to have also been approached by KPMG.

Guardian Media owns three Real Radio stations in Scotland, Wales and Yorkshire, plus the two Jazz FM stations which are being rebranded as Smooth FM.

The division is fast-growing but is still losing money. Losses were cut from £6.3m to £2.1m last year.

Radio groups are looking to bulk up as Capital Radio and GWR's £700m merger nears completion. Meanwhile Lord Alli is trying to convince shareholders in SMG to accept his £100m bid for Virgin Radio.