British commercial media group SMG Plc has reached an agreement to sell Virgin Radio to India's TIML Golden Square Ltd. for £53.2 million ($105 million) in cash.

In a statement issued today to the London Stock Exchange, Glasgow- based SMG's CEO Rob Woodward said the agreement represented "a sound price for Virgin Radio and a good deal for SMG shareholders."

The group had told its shareholders the sale would reap £60 million ($117 million). That sum, however, could still be reached. An additional consideration of £8 million ($15 million) will become payable if the radio business is licensed to use the "Virgin Radio" brand within two years of closing, meaning the full price would come to £61.2 million ($120 million).

SMG will now refocus on its wider strategic plan to invest more in TV production and its Internet activities.

"The disposal of Virgin Radio is consistent with our overall strategy and the proceeds of the sale will allow us to return cash to shareholders," adds Woodward, "as well as further strengthen an already healthy balance sheet."

TIML Golden Square is a unit of Bennett Coleman & Co., which publishes the Times of India newspaper and operates radio stations in the country.

The disposal is still subject to the approval of SMG's shareholders. A general meeting will be convened at a date yet to be confirmed.

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