Virgin Radio flotation delayed

The planned flotation of Virgin Radio is now unlikely to happen this year. Plans by parent company SMG to take the radio station public were dealt a blow when CEO Paul Jackson announced he was jumping ship to GCap at the end of last month. That, coupled with current uncertainty in the markets, means that SMG is unlikely to stage any flotation until 2008. As previously reported, SMG hopes to sell Virgin Radio to help reduce debts and to enable the company to focus on its Scottish TV business. As also previously reported, rumour still has it one buyer might step in and acquire the whole of Virgin Radio before any flotation. Chatterers say Global Radio, the company that recently acquired Chrysalis Radio, is a current favourite to take over the station, although chatterers also say that all interested parties so far are not willing to pay anywhere near the £105 million SMG reckon the station is worth, making a flotation more likely, albeit a delayed flotation.