The planned joint venture between RG Capital and DMG on the NSW Central Coast has been abandoned after possible regulatory problems emerged during the due diligence process. Disagreement over key financial terms is also believed to have been an issue.

The deal was to see RG Capital take a 50% stake in the new DMG licence in a swap deal which included SEA FM Gosford plus 3BO and Star FM Bendigo.

DMG will now proceed to get their local licence up and running by the deadline of June 2003. DMG paid $13.5 million for the licence earlier this year.