News Corp to buy TalkSport owner Wireless Group

News Corp has agreed to buy Wireless Group, formerly UTV Media, in a £220.3m deal.

Under the terms of the offer, Wireless shareholders will receive 315p in cash per share held. In addition, Wireless shareholders on the register on 20 May will receive the previously-announced special dividend of 6.15p per share and the 2015 final dividend of 7.60p per Wireless share, both of which are expected to be paid on 15 July.

The offer represents a premium of around 70.3% to the closing price of Wireless on Wednesday.

News Corp said the acquisition of Wireless – which owns radio station TalkSport – was an “excellent strategic fit” with its existing operations, broadening its range of services in the UK, Ireland and internationally.

The parent company of the Sun and the Times said Wireless’ audience complements the audience of the Sun, adding that there is significant opportunity to increase engagement and monetisation through cross-promotion and leveraging Wireless' and News Corp's respective talent and advertising sales forces.

News Corp’s chief executive Robert Thomson said: “The proposed investment is a clear sign of our commitment to, and belief in, the United Kingdom as a place to do business successfully and profitably.

"We look forward to welcoming Wireless into News Corp's global family of businesses. With its strength in radio, as well as its digital and international growth potential, Wireless will help improve the engagement of our publishing brands, especially those within News UK. There is no doubt that Wireless is a company reborn since the sale of its television assets last year and we are excited by its prospects.”

Wireless Group shares surged on the news, up 67% to 309p at 1445 BST.