GCap Media, the UK commercial radio group whose brands include Capital Radio and Classic FM, has sold its two Century FM stations to Guardian Media Group for £60m.

The two stations, 105.4 Century FM in Manchester and 100-102 Century FM in the North East, had net assets of £1.5m in March 2006 and generated earnings before interest tax, and amortisation of £5.3m. 

In a statement, GCap announced that the proceeds of the sale would be put towards reducing bank debt and pension scheme deficits. GCap's net debt is currently £76m while pension deficits total £8.5m. 

GCap also hinted that further brands could be put up for sale, stating that the group would be looking at positioning and strategic options for its portfolio over the next few months.

The acquisitions mean that Guardian Media Group now owns 50% of the top ten local radio stations.