ARN owner HT&E (ASX:HT1) acquires Grant Broadcasters

• Australian Radio Network’s (ARN) parent company will acquire radio rivals Grant Broadcasters for $307.5 million
• ARN’s owners HT&E (HT1) have signed a binding agreement to acquire all of Grant’s assets, creating a network of 104 stations across 33 markets
• In comparison, ARN’s largest competitor Southern Cross Austereo (SCA) owns 99 stations across the metro and regional areas
• HT&E will fund the acquisition through its existing cash reserves, financing facilities and through the issue of HT1 shares to Grant’s owners
• Shares in HT1 are down 0.25 per cent at $1.99 each

Australian Radio Network’s (ARN) parent company will acquire regional radio rivals Grant Broadcasters for $307.5 million.

ASX-lister HT&E (HT1) owns ARN, which in turn owns the KISS FM iHeartRadio, The Edge and Pure Gold networks.

HT1 announced on Friday it has signed a binding agreement to acquire all of Grant’s digital and broadcast assets.

The radio network owner will hand over $238 million worth of cash and debt from its funding facilities as part of the deal, as well as issuing HT1 shares at $1.93 each.

The cash portion of the consideration makes up 77.5 per cent of the deal, while the share issue makes up the remaining 22.5 per cent.

Once the deal is complete, ARN will have a network of 58 radio stations and 46 DAB stations across 33 markets.

In comparison, ARN’s largest competitor Southern Cross Austereo (SCA) owns 99 stations across the metro and regional areas.

HT&E CEO and Managing Director Ciaran Davis said the business was excited to welcome Grant Broadcasters to its roster of stations.

“It is rare that an asset of this quality and strategic fit to our existing portfolio becomes available and we are excited by the opportunities presented by the coming together of these two great businesses,” Mr Davis said.

Grant Broadcasters CEO Alison Cameron echoed his comments, saying the 80-year-old business was excited to be working with ARN.

“There is a strong cultural similarity between the two businesses with both ARN and Grant committed to expertly creating great local content for the communities we serve,” she said.

Shares in HT&E were trading down 0.25 per cent at $1.99 each at 2:55 pm AEDT.