A Galway businessman has bought a third of a Galway-based radio station. iRadio Chief Executive Dan Healy confirmed that 38.8 per cent of the company's shares changed hands for an undisclosed fee last week, saying he was delighted the company had become more controlled by local interests.

Highcross Communications Ltd, owned by Galway publican John Mannion, bought 38.86 per cent of the iRadio group from original shareholders Richard Nesbitt, Arnotts leading shareholder, and Niall McFadden, a financier. Mr Mannion has many business interests including The Front Door bar on Shop Street.

This deal was finalised last week but had been approved by the Broadcasting Commission of Ireland in June, when both Mr Nesbitt and Mr McFadden expressed an interest in selling off their shares. According to BCI rules, the shareholding of a company cannot be altered for two years from the award of a licence.

"On the second anniversary of the i105-107 award, Mr McFadden and Mr Nesbitt approached the shareholders on the basis that iRadio wasn't core to their interests and to see if there was an appetite among the present shareholders to take their share.

"We were thrilled that John Mannion was interested in acquiring their shares in iRadio. I think he can see we are building a massive base with the stations," said Mr Healy. Mr Healy said i102-104 is the largest regional station in the country, adding, "it is on fire and it is a very strong business. It is great that the shareholding has been consolidated in its base in the West now and not from the east. This is very positive."

The radio group made a loss of €2.6 million in 2008 but are said to be on target to break even some time in 2010. Mr Healy said the cost of the infrastructure put in, which included 19 transmitters all over the West, Northwest, Northeast, midlands and border areas was a massive outlay that is still being paid off.

Accounts for the Galway-based i102- 104 show that it made a loss of €1.53 million in 2008, while the sister station i105-107, based in Athlone made a 2008 loss of €1.26 million.

Mr Healy said that although the advertising market is difficult, both stations, through their phenomenal success were beginning to draw in extra advertising revenue.

Mr Mannion is under no obligation to make a complete takeover bid due to the fact that the company is privately owned.

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