RJR/Gleaner Communications Group has sold its Music 99 radio station to a St Lucian registered media company, Caribbean Global Network Incorporated.

RJR/Gleaner Communication Group disclosed that it has concluded a deal with its subsidiary Independent Radio Company, which owns Music 99 to sell its entire shareholding in the radio station to Caribbean Global Network. Completion of the transaction is expected on or before April 15 this year, having satisfied all closing conditions and received the necessary regulatory approvals.

In a statement, which was posted on the website of the Jamaica Stock Exchange, where its shares are traded, RJR/Gleaner Communications Group reported that the sale of the radio station “is in fulfillment of a conditionality of the Broadcasting Commission, which required the group to relinquish one of its radio licenses or a set of broadcast frequencies upon the amalgamation of Radio Jamaica Limited and the Gleaner Company.

Both media companies were amalgamated in March 2016 to form the RJR/Gleaner Communications Group.

In its statement RJR/Gleaner Communications Group explained that the broadcasting regulators did allow extensions in time to facilitate commercial negotiations to occur.

The statement concluded that the RJR Communications Group will continue to broadcast over the air on four radio stations, namely: Radio Jamaica 94, HITZ 94FM, FAME 95FM and POWER106 FM.

The Jamaica Observer's Sunday Finance reported last week that the Government has formally approved an increase in the ownership limit in the broadcasting licenses issued to Radio Jamaica Limited (RJR), thus paving the way for its additional public offering (APO) of shares slated for later this year.

The current ownership limit of 10 per cent by any single entity or individual has been increased to 21 per cent.

This increase has been recommended by the Broadcasting Commission and has been accepted by the portfolio minister, Fayval Williams, who has stewardship of the information ministry, which supervises the commission.

Minister Williams has already communicated to RJR the Government's decision to approved changes to the ownership limits in its broadcast licenses.

RJR has been awaiting this move, as a precursor to returning to the equities market for capital to undertake its expansion and development plans.