Trinity Mirror announces that it has reached agreement for the
sale of BTNL, and its immediate holding company TIH (Belfast), to Independent
News & Media (Northern Ireland) Limited (a wholly-owned subsidiary of
Independent News & Media plc, 'Independent News & Media') for £300
million, subject to the consent of the Secretary of State for Trade and Industry
and notification to the Minister for Enterprise, Trade and Employment of the
Republic of Ireland.
BTNL is the leading newspaper publisher in Northern Ireland
whose flagship titles are the Belfast Telegraph and the Sunday Life. The
disposal of the titles and assets of BTNL is required as a condition of the
consent given by the Secretary of State for Trade and Industry to the merger of
Trinity plc and the Mirror Group plc last year.
Trinity Mirror will receive cash of £300 million, less any
indebtedness and subject to adjustment reflecting working capital movements in
BTNL between signing and completion. Trinity Mirror will receive the benefit of
cash generation up to completion, net of allowances for capital expenditure and
tax. Trinity Mirror will use the proceeds from the sale of BTNL to repay debt
and for general corporate purposes. BTNL generated unaudited operating profits
of £21 million (before management charges) in 1999 on unaudited turnover of £54
million. As of 2 January 2000 BTNL had unaudited net assets of £135
million.
Application will be made to the Secretary of State for Trade and
Industry for the referral of the transaction to the Competition Commission and
notification will be made to the Minister for Enterprise, Trade and Employment
of the Republic of Ireland. Completion of the transaction is not expected to
take place until the third quarter of this year.
Greenhill & Co. advised Trinity Mirror on this
transaction.
Commenting on the disposal, Philip Graf said: 'BTNL is a
tremendous business and we are disappointed to have to sell it. However, we
believe Independent News & Media will provide an excellent home for BTNL
which will ensure the continued prosperity and integrity of the business going
forward.'
