Mumbai: Newspaper publisher Bennett Coleman and Company, which owns the world's largest-circulated English newspaper, The Times of India, has acquired Virgin Radio Holdings from UK's Scottish Media Group (SMG) for £53.2 million ($105 million).

The acquisition was made through TIML Golden Square, a unit of Bennett Coleman & Co.

Glasgow-based SMG Plc, Scotland's largest commercial media company and one of the three commercial radio licensees in Britain, said the sale will bring net proceeds of around 48.7 million pounds.

SMG said the sale is part of the company's plan to increase TV production, expand internet offerings and build on its relationship with ITV Plc, the UK's biggest commercial broadcaster.

SMG operates two ITV franchises in Scotland. The company's STV television unit has continued to outperform the ITV network, in national and regional sales, SMG said today, adding that it predicts regional sales to have ``continued double-digit growth in June.''

"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, as well as further strengthen an already healthy balance sheet," Rob Woodward, chief executive for SMG, said.

Virgin Radio, which was started by entrepreneur Branson in 1993, was sold to Ginger Media Group Ltd in 1997. Ginger was bought by SMG in 2000 for 225 million pounds. Virgin Radio has an FM licence for London and a national AM licence.

SMG has been selling assets to reduce debt and costs after posting a loss since 2006 as TV audiences fell and advertisers switched to the internet. The company's losses mounted in 2007, forcing it to sell its Primesight advertising unit to GMT Communications Partners for 62 million pounds last year.

In April 2007, SMG also announced an initial public offer of Virgin Radio and in September revealed plans to sell it. SMG had hoped to sell it for 60 million pounds.

The deal, perhaps the first from an emerging market, comes as traditional western media companies in the United States, Western Europe and Japan have been struggling with falling advertising rates, a gloomy economic environment and competition from the internet.

"The opportunity to acquire a valuable radio asset couldn't have come at a better time," said AP Parigi, chief executive of TIML, which handles experimental marketing, film and radio rights for Bennett Coleman.

Virgin Radio, which operates AM and FM stations and reaches 2.7 million weekly listeners in England, Scotland and Wales, will broadcast under a new name starting in August.

TIML plans to invest £15 million for rebranding the stations. Bennett Coleman will gain listeners in Britain, but not the well-known Virgin name.

Bennett Coleman, a closely held company known in India as the Times Group, is chaired by matriarch Indu Jain and run by her two sons.

As of 31 July 2007, Bennett Coleman had a net worth of Rs3,410 crore ($800 million).

The Times of India claims a circulation of more than three million. The Times group also owns The Economic Times, the most-read Indian business paper, and radio and television stations.