Trinity Mirror plc, the UK's largest newspaper publisher,
announces today that it has agreed terms to sell its regional newspaper
businesses in Ireland to Europe's leading venture capital group 3i for £46.3m.
The consideration for the sale is payable in cash and in addition, £0.6m of debt
will be repaid to Trinity Mirror companies.
The transaction is structured as a sale of Trinity Mirror
group's shares in Century Press and Publishing Limited and the acceptance by
Trinity Mirror plc of an offer by a newly formed company, Local Press Limited,
for its shares in The Derry Journal, Limited.
The businesses, Century Press and Publishing Limited and The
Derry Journal, Limited together publish a total of seven newspapers in Northern
Ireland and the Republic of Ireland.
These include the world's oldest continuously published English language newspaper - The News Letter in Belfast - first published in 1737; The Derry Journal and the Donegal Democrat.
These include the world's oldest continuously published English language newspaper - The News Letter in Belfast - first published in 1737; The Derry Journal and the Donegal Democrat.
The transaction is subject to approval by the Irish Competition
Authority and it is expected the disposal will be completed by early 2004. The
sale proceeds will be exempt for corporation tax purposes and will be used to
pay down debt.
Sly Bailey, Chief Executive Trinity Mirror plc said: "These are
tremendous assets to own but for Trinity Mirror there was limited strategic fit.
We were pleased with the high level of interest in these titles, and believe we
have achieved a good price and realised value for our shareholders by their
disposal. We wish all staff who move with the titles, and their new owners
every future success."
Robin Marshall, 3i Director said: "3i is delighted to be able to
back existing management to grow these titles. They are a talented and dynamic
team who have a significant track record of success. The economy in the North of
Ireland is experiencing strong growth, and successfully run local newspapers
will undoubtedly benefit. In addition there are many exciting opportunities to
consolidate across the Irish market, replicating what we have seen in the UK
mainland over the last ten years."
