Mecom Group‘s Danish subsidiary, Berlingske Media A/S, has agreed the sale to North Media A/S Group of its media centre in Frederiksberg publishing six free weeklies and its 60 per cent shareholding in Lokalaviserne Østerbro og Amager (“LØA”) publishing two free weeklies.
The total enterprise value of the Sale is DKK65 million (€8.7 million). The consideration is payable in cash at completion and the Group expects the reduction in net debt resulting from the sale to be approximately €8.3 million. The Sale is expected to complete on 1st November 2013.
The principle activity of both LØA and the Frederiksberg media centre is the publishing of various free weekly newspaper titles in Copenhagen. The combined profit before tax of the disposed businesses in 2012, including the 40 per cent minority share of LØA’s consolidated pre-tax earnings, was DKK19 million (€2.6 million), before allocations of central overhead. Berlingske Media A/S will continue to provide printing services to both the Frederiksberg media centre and LØA following completion of the Sale.
The sale will be effected by way of a transfer of the trade and assets of the Frederiksberg media centre and a sale of the Group’s shares in LØA and will result in the deconsolidation of approximately €8.4 million of gross assets from the Group’s balance sheet. Flemming Hansen will retain his position as Chief Executive Officer of LØA following completion of the Sale.
The proceeds of the Sale will be used to pay down outstanding bank borrowings.
Norway, Oslo, UK, London & Denmark, Copenhagen
- Mecom Group – first half results – revenues down 11% Posted on July 31, 2013
- Mecom Group sells Danish free sheets to Sjællandske Medier Posted on May 28, 2013
- Mecom Group plc – results for year ended 31st December 2012 Posted on March 21, 2013
- Mecom Group issues a pre-close trading update Posted on January 11, 2013
- Mecom to conduct a strategic review including, potentially, further disposals. Tom Toumaziz to step down as CEO Posted on July 19, 2012
- Mecom completes the sale of its media business in Norway to A-pressen AS Posted on June 28, 2012
- Mecom sells its media business in Norway to A-pressen AS Posted on December 6, 2011
- Mecom rejects approach by Dutch banks Posted on April 8, 2011
- David Montgomery forced out as chief executive of Mecom after pressure from shareholders Posted on September 10, 2010
- Mecom exceeds market expectations Posted on August 13, 2010