French business daily Les Echos is reporting that Lagardere could end up selling its French radio stations. These assets are currently not amongst the list of planned disposals.
In a report on the suggestion from investment bank Exane/BNPP, the bank says: “According to this newspaper, M6 (owner of RTL), NRJ, TF1, RMC could all be interested in acquiring Virgin Radio and RFM.”
“Les Echos points to potential synergies between RFM and M6’s channels, to the upcoming change in French audio-visual law planned for October as a catalyst, and to the price tag of the asset. It suggests that Lagardere asking price is at €175 million for Virgin Radio and RFM. Note that our ‘Sum of the Parts’ [valuation] values all French radios (including flagship channel Europe 1) at €98 million in line with consensus.”
“The newspaper also claims that a sale of Virgin Radio and RFM could be seen as a prelude to the disposal of Europe 1,” says the bank’s report.