RadioWorks offer fair - report

CanWest is already the majority owner of RadioWorks through its Media Investments subsidiary, holding 71.8% of shares in the broadcaster. Late last year it moved to buy the remainder of the company at $9.35 a share.

The appraisal report by Deloitte Touch Tohmatsu has used the capitalisation of earnings method based on forecast earnings to the end of August 2001 to value the shares.

Deloitte says it conducted a sensitivity analysis to determine the effect of changes in RadioWorks' earnings before interest, tax, depreciation and amortisation.

"Under various scenarios, Media Investment's $9.35 per share offer is either within the ranges calculated or higher. Consequently, in our opinion, the terms and conditions of Media Investment's offer to acquire up to 3.46 million shares in RadioWorks held by the public shareholders are fair."

The report adds that a competing bid for RadioWorks is unlikely.

RadioWorks emerged in 1999 after a merger between listed radio companies Radio Pacific and Radio Otago, and owns radio stations throughout the country.

CanWest began its takeover of the company in May last year at $8.25 per share. CanWest also owns TV3, TV4 and various other New Zealand radio brands including More FM, the Breeze and Channel Z.

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