UK’s Daily Mail and General Trust plc (LON:DMGT), or DMGT, unveiled Wednesday an agreement to sell its regional newspaper arm, Northcliffe Media, to newly-established media joint venture Local World.
The purchase price consists of a GBP52.5m (USD83.6m/EUR65.4m) cash portion and shares representing a 38.7% interest in Local World.
The deal is seen to be wrapped up around year-end.
The Iliffe family will sell Iliffe News & Media Ltd to the venture in exchange for a 21.3% stake in it. In addition, Trinity Mirror will buy 20% of Local World, with the remainder of the new firm to be acquired by Artefact Group, Odey Asset Management and other investors.
Local World will consist of 63 local portal websites, 16 daily titles, 36 paid weekly titles, 40 free weekly titles, and two Metro franchises and a number of niche products including magazines, DMGT notes. The tie-up will have an enterprise value of some GBP100m at completion.
Northcliffe Media’s CEO Steve Auckland will lead Local World in the same role.
DMGT picked Lazard & Company Ltd sole financial adviser on the deal.
For more on the Daily Mail’s disposals, click here.