Radio One Inc. (ROIAK), the largest U.S. radio broadcaster targeting black and urban audiences, said today it will sell stations in Dayton, Ohio, and Louisville, Kentucky, to a private equity firm for about $76 million.
The sale to Arlington Capital Partners, based in Washington, should close in the second half of the year, Radio One said in a statement distributed by Business Wire.
The spinoff includes all five Radio One stations in Dayton and five of the six in Louisville. The price is about 12 times yearly operating profit at the stations, said Lanham, Maryland- based Radio One.
Shares rose 17 cents, or 2.4 percent, to $7.38 in Nasdaq Stock Market composite trading as of 3:59 p.m. New York time. The stock has fallen 6.1 percent in the last year, compared with a 17 percent climb in the Nasdaq Composite Index.
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