Emap has agreed to acquire the 73 per cent stake in Scottish Radio Holdings (SRH) it does not already own in a deal that values the Glasgow-based radio and newspaper group at £391 million.

The media conglomerate, whose initial 1,040p-a-share offer, which valued SRH at £374 million, was turned down, said the SRH board had agreed to an improved 1088p-a-share bid.

The increased bid came three months after Emap insisted it "would not pay a price that runs counter to th interests of Emap shareholders".

Emap said its latest offer represented a 17 per cent premium to SRH’s average middle market closing price of 926p in the 12 months to March 31.

Emap added it had agreed to sell SRH’s local newspaper operation, Score Press, to Johnston Press for £155 million.

"This transaction enables us to create the highest quality independent local radio business, reaching all of the UK’s major conurbations and delivering a strong position in the Republic of Ireland," Emap chief executive Tom Moloney said.

"This is an important step in Emap’s radio strategy, one that creates real value and leaves us well placed to make the digital step that will be so important in establishing leadership of UK commercial radio."

The SRH chief executive, David Goode, said the combination of Emap’s radio business with SRH’s network of 22 highly rated radio stations in the UK and Republic of Ireland would create a strong national radio group with exciting prospects.

He added that Score Press was a highly profitable and well-run portfolio of weekly newspapers.

"It represents a very valuable asset and a good fit with Johnston Press’s extensive newspaper interests," he said.

Emap’s existing broadcasting operations include the radio stations Kiss, Kerrang and Magic, along with television station The Hits.

Its consumer magazines include Closer, Empire, Arena, Bliss, Match and Yours, and its business division publishes titles such as Construction News and New Civil Engineer. The portfolio also includes French TV listing magazines Tele Star and Tele Poche.

In May, Emap said annual pre-tax profits dropped to £112 million due to a non-cash charge of £30 million, although pre-tax profit before goodwill and one-off items rose 5 per cent to £205 million.

SRH has 22 wholly owned radio stations including Radio Clyde, Radio Borders, Tay FM in Dundee, Cool FM in Northern Ireland, Carlisle CFM Radio, Ireland’s Today FM and Southampton-based Wave 105.

Score Press includes 16 Scottish local papers, 24 in Northern Ireland and 5 in the Irish Republic.

The board of EMAP said it believes the acquisition of SRH will generate annual savings of about £5 million by the third full year of ownership for a cash cost of some £5 million.

Shares in Emap were down 1p at 798.5p in morning trade.

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