Virgin Radio yesterday looked set for a stock market listing at about half the price paid to the broadcaster's previous owner, DJ Chris Evans.
Media group SMG, which bought the business for £225m in 2000, plans to spin off the radio arm so it can concentrate its efforts on television broadcasting and production, including STV in Scotland.
Virgin Radio is currently valued on SMG's books at £105m, a hefty discount on the figure SMG paid to Mr Evans' Ginger Media Group in 2000.
The proposed radio flotation, which could take place in the summer, was unveiled at the same time as SMG announced annual profits had halved to £10m during a "troubled" year.
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