24th May 2005 14:19
Independent News & Media PLC24 May 2005 INDEPENDENT NEWS & MEDIA PLC ANNOUNCES RECEIPT OF INDIAN GOVERNMENT APPROVAL FOR NEWSPAPER INVESTMENT IN INDIA Dublin/London -- 24th May 2005: Independent News & Media PLC (ticker: INWS.I;INWS.L) ('Independent') is pleased to announce today that it has receivedformal, statutory Indian Government approval for the purchase of 26% of Indiannewspaper publisher, Jagran Prakashan Private Limited ('JPPL'), for aconsideration of Rupees 1,500 million (€27.3 million). This follows recent changes to India's foreign ownership legislation in themedia sector and the earlier announcement (22nd December 2004) of Independent'sintention to invest in JPPL, which was subject to approval by both the IndianMinistry of Information and Broadcasting and the Indian Foreign Investment Promotions Board. Both of these formal approvals have now been received. JPPL is the publisher of the Hindi-language newspaper, Dainik Jagran, sellingover 2 million copies per day. Dainik Jagran, in its 63rd year, is the largestread newspaper in India and has one of the largest daily readerships of anynewspaper worldwide (17.5 million readers), and publishes 25 editions from 25printing centres across India. The remaining 74% shareholders are members of thefounding Gupta family, who currently own 100% of JPPL. The consideration will be financed from Independent's existing cash balances andis expected to be immediately earnings enhancing. Commenting on the announcement, Independent's Chief Executive, Sir AnthonyO'Reilly said: "We are delighted that our new theatre of strategic investment, India, hasfinally been made possible by these approvals. The Indian market remains one ofthe most exciting and fastest growing media markets in the world, and we arenaturally pleased to be able to partner in such a distinguished and growingtitle as Dainik Jagran." -- ENDS -- 24 May 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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