Gannett has emerged as the successful suitor to SMG’s publishing division, with an offer that values the titles at £216 million, the two groups announced during the Christmas period.
US group Gannett, owner of the Newsquest regional newspaper group in the UK, had all but secured the deal in December when reports emerged that SMG may reopen the bidding after Gannett had allegedly tried to renegotiate the terms of the deal (see
SMG Reopens Herald Auction, Say Reports). Other bidders had included Independent News & Media and the Barclay brothers, owners of the
Scotsman newspaper.
SMG Publishing consists of three newspapers (the Herald, Sunday Herald and Evening Times), a stable of 11 business to business and specialist consumer magazine titles and an online advertising and content business. The disposal is subject to the approval of SMG’s shareholders and of the secretary of state for Trade and Industry. The acquisition has already been referred to the Competition Commission for investigation (see Gannett Bid For SMG Titles Referred To Competition Authorities).
SMG has sent a letter to its shareholders who will meet on 24 January, when the Board will seek approval for the sale.
