Chrysalis sells radio business for £170m

Chrysalis has sold its radio business to an investment company headed by former ITV chief executive Charles Allen.

The £170 million sale follows a review of its businesses which Chrysalis announced earlier this year. The company said the sale of the radio division - which includes stations Heart, Galaxy and LBC - gives its music publishing arm more focus and will enable it to build its position in the market.

Chrysalis profits from the sale to the Global Radio group are around £95 million, even with the reported £75 million investment the company has made in the last 13 years since it launched Heart. Shareholders are expected to see between £90 million and £100million.

Allen, who resigned as ITV chief executive last year amid falling revenues and low viewing figures, is chairman of Global Radio.