Forever Broadcasting, the radio and interactive entertainment venture, has formed a partnership with Kelvin Mackenzie's The Wireless Group and plans to float the combined group on the Alternative Investment Market to raise £15m.
TWG, which is run by former Sun editor Mackenzie, has a 17.9 per cent stake in Forever and has agreed to sell the company's radio advertising through its sales house, Impact, as part of the deal.
The Forever management team, including chairman John Josephs and managing director Eric Law, built up The Radio Partnership which was bought by Mackenzie's TWG for £47m in 1999.
Forever needs to raise £15m on Aim to fund future expansion plans. Assets include Liverpool-based Juice 107.6FM, which it acquired for £2m last November, and Manchester-based Tower FM, which was bought for £3.5m. Forever has also invested £1m in XY Network, a company delivering interactive entertainment to mobile phones.
Five years ago, the Forever management team sold Metro Radio in Newcastle to Emap, the media group, for £99m after helping to build up the business.