Mecom Group plc has completed the sale of Mecom Europe AS, which is the holding company for Edda Media AS, Mecom’s media business in Norway to A-pressen AS. This follows the earlier announcement that the Norwegian Competition Authority had cleared the sale. Edda operates 33 newspaper and websites.
Fusion DigiNet reported the sale agreement in December. the business was sold for an enterprise value of NOK1,725 million (€222 million).
The enterprise value of NOK1,725 million (€222 million) represents 7.9 times Edda Media’s FY 2010 EBITDA and 7.2 times Edda Media’s FY 2011 consensus EBITDA.
After adjusting for certain minority interest, net debt and working capital items, the effective proceeds to Mecom for the Mecom Europe shares are expected to be approximately NOK1,800 million (€231 million) of which approximately NOK300 million (€39 million) will be represented by cash in Edda Media.
In addition, Mecom’s sale and purchase agreement with A-pressen includes a conventional price adjustment mechanism such that, subject to the preparation and agreement of completion accounts, Mecom will receive an additional cash payment from A-Pressen for the free cash flow generated by Edda Media between 31st December 2011 and completion. Mecom anticipates that these incremental proceeds will be received within 3 months of completion.
Tom Toumazis, Chief Executive Officer of Mecom, commented, “We are delighted by the Norwegian Competition Authority’s announcement today which will allow us to complete the sale of Edda Media, resulting in a further significant improvement in the Group’s financial position. We are grateful to A-pressen for their co-operation throughout the past months and wish all our people at Edda Media well for the future.”
Norway, Oslo & UK, London
- Mecom sells its media business in Norway to A-pressen AS Posted on December 6, 2011
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- David Montgomery forced out as chief executive of Mecom after pressure from shareholders Posted on September 10, 2010
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