Privately-held company 7Digital is reportedly nearing a deal to takeover British UBC Media Group. Under the deal, 7Digital will take UBC's place in the London Stock Exchange next year. According to a report by The Telegraph, the letter of intent, which allows the reversal to take place, had already been signed by the two parties.

The deal will provide a stock market listing for 7Digital, which could bring in a valuation of around GBP50 million, the report said.

The Telegraph said the float will also provide an exit route for the online music platform company's backers. 7Digital's investors include British venture capital firm Balderton Capital and chip maker Imagination Technologies Group.

As a result of the takeover, UBC chief executive Simon Cole will become the new executive chairman of the enlarged company. 7Digital's co-founder and chief executive Ben Drury will be serving as chief executive, the report said.

7Digital is a fast growing music and content digital platform with over 25 million downloadable music available. It has partnered with Samsung, HTC and Pioneer, The Telegraph said.

Meanwhile, radio services provider UBC sold its profitable radio sales business for GBP11 million in 2008. One of its main assets was a 34% stake in music-sharing site Audioboo, the report said.