(Sharecast News) - Duke Capital announced a £3.7m follow-on investment in Step Investments to support the acquisition of Galway Bay FM, expanding Step's Irish radio portfolio through its subsidiary Bay Broadcasting.
The AIM-traded firm said the additional financing took its total credit exposure to Step to £15.2m, and would fund the purchase of the leading Galway-based station, established in 1989 and known for its strong local programming mix.

Duke said the investment, made on its typical terms with a starting yield of 13.5% and a 6% either-way annual revenue adjustment factor, would enable Bay to broaden its network of profitable Irish broadcasters to four - Ireland's Classic Hits, Radio Nova, Sunshine 106.8, and Galway Bay FM.

Radio Nova and Sunshine 106.8 were currently ranked as the second and third most popular stations in Dublin, respectively.

Chief executive Neil Johnson said the transaction demonstrated Duke's commitment to supporting its long-term partners.

"The Duke team is delighted to support Step and Bay in acquiring Galway Bay FM, a leading local broadcaster with deep roots in its community and a highly loyal audience," he said.

"Galway Bay FM is a natural addition to Bay's existing radio portfolio, and this transaction is another example of how Duke's flexible capital can help long-standing partners like Step grow through acquisitions."

Step chief executive Mike Ormonde said the deal marked a significant milestone for the company's media strategy.

"The acquisition of Galway Bay FM represents an exciting addition to Bay's growing radio portfolio and aligns with our strategy of investing in high-quality media assets," he said.

"Galway Bay FM has been the voice of Galway for over three decades, and with the support of Bay's experienced management team, we see a clear opportunity to strengthen its commercial performance, broaden its reach and move Bay into the position of being the second largest commercial radio group in Ireland."

Galway Bay FM, licensed by Coimisiún na Meán, is the dominant station in its region with a market share of more than 30%, ahead of national and multi-city competitors.

It broadcasts a mix of local news, current affairs, sport and music from its studios in Galway city.

At 1008 BST, shares in Duke Capital were down 1.06% at 27.9p.

Reporting by Josh White for Sharecast.com.

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