17th Feb 2006 07:00
For immediate release Daily Mail and General Trust plc (`DMGT') DMGT to retain Northcliffe The Board of DMGT announced on 30 November 2005 that it had been conducting astrategic review of DMGT's regional newspaper division, Northcliffe NewspapersGroup Limited (`Northcliffe'). The strategic review has continued since thatannouncement and has encompassed: (i) the assessment of the value to DMGT ofrestructuring Northcliffe (including the Aim Higher initiative) and (ii) aprocess to establish whether greater shareholder value could be generated by asale of Northcliffe.The Board has now concluded the two elements of the strategic review. This hasidentified further significant cost and revenue opportunities, in addition tothe Aim Higher programme. These further improvements are already beingimplemented and the Board's confidence in the prospects for Northcliffe hasrisen.The Board received three offers for Northcliffe on 8th February 2005, as wellas proposals to acquire parts of the business. However, the offers reflectedthe recent downturn in trading in the regional newspaper sector caused by theweakening of the broader UK economy. In the view of the Board, the offers didnot fully reflect the long term value of the business.Consequently, the Board has decided to retain Northcliffe. It firmly believesthat Northcliffe has valuable long term franchises which will continue to playa vital role in their local communities. Having compared the value that othershave put on the business with the value to DMGT of Northcliffe in arestructured format, the Board is clear that the decision to retain Northcliffewill deliver greater value to shareholders than a sale in the current tradingconditions.EnquiriesAndrew Grant 0207 353 4200Andrew HonnorENDDAILY MAIL & GENERAL TRUST PLCRelated Shares:
DMGT.L