28th Oct 2015 07:02
DAILY MAIL & GENERAL TRUST PLC - Proposed disposal of Local World stake to Trinity MirrorDAILY MAIL & GENERAL TRUST PLC - Proposed disposal of Local World stake to Trinity Mirror
PR Newswire
London, October 28
28 October 2015
Daily Mail and General Trust plc (‘DMGT’)
Proposed disposal of Local World stake to Trinity Mirror
DMGT to dispose of all of its 38.7% stake DMGT to receive £73 million cash All other Local World shareholders, including the Iliffe Family and financial investors, to dispose of their respective stakes Trinity Mirror to own 100% of Local World (including the 20% already held) on completion Split exchange and completion pending approval by Trinity Mirror shareholdersDMGT announces the proposed sale of its 38.7% equity stake in Local World Holdings Limited (“Local World”), the UK regional news publisher, to Trinity Mirror plc (“Trinity Mirror”). The proposed transaction will see all Local World shareholders dispose of the entirety of their respective shareholdings to Trinity Mirror, with Trinity Mirror acquiring all the shares in Local World in addition to its current 20% holding. The transaction values Local World on a debt-free cash-free basis at £220 million.
The purchase price for the 80% of Local World not already owned by Trinity Mirror is £154 million. Trinity Mirror will also assume debt and debt-like items of circa £27 million at completion. DMGT’s share of the consideration on completion, net of transaction costs, will be £73 million and will be paid in cash.
The transaction will be conditional on approval by the shareholders of Trinity Mirror at a General Meeting expected to be held on or around 13 November 2015.
DMGT has been a shareholder in Local World since its formation on 30 December 2012. During that time, Local World has generated positive returns for its shareholders. In the year to 30 September 2014, DMGT’s share of Local World’s operating profits was £15 million.
The combination of Trinity Mirror’s and Local World’s assets will create the largest regional news publisher in the UK. The enlarged business will benefit from Trinity Mirror’s track record of successful cost management, creating scope for cost synergies.
For further information
For analyst and institutional enquiries:
Stephen Daintith, Finance Director, DMGT: +44 20 3615 2902
Adam Webster, Head of Management Information and Investor Relations, DMGT: +44 20 3615 2903
For media enquiries:
Kim Fletcher / Charlie Potter, Brunswick Group LLP: +44 20 7404 5959
About DMGT
DMGT is an international business built on entrepreneurship and innovation. We bring together leading companies and talented people to provide businesses and consumers with high-quality analysis & insight, information, news and entertainment.
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