The deal will see a new company, Evening Standard Ltd, established that will own the paper, with Lebedev taking a stake of 75.1% and DMGT subsidiary Associated Newspapers becoming a minority shareholder with 24.9%.
Associated will continue to provide services – including printing and distribution – to the paper for an initial period, with the opportunity to extend these arrangements by agreement.
Lebedev will be chairman of Evening Standard Ltd, while his son Evgeny will be senior executive director. Justin Byam Shaw, an adviser to Lebedev Holdings, will be deputy chairman.
The new company will establish an editorial committee to safeguard the principle of editorial independence, said DMGT.
Lord Rothermere, Chairman of DMGT plc, said: “We are very proud to have owned the Evening Standard. It has a long and distinguished history as one of the world’s great city newspapers, based on outstanding journalism. I believe that Alexander Lebedev shares my commitment to newspapers and will continue to invest in the Evening Standard. I would like to take this opportunity to reiterate that DMGT remains fully committed to journalism and newspaper ownership.”
Lebedev said: “The Lebedev family is delighted to be investing in the Evening Standard. We are strong supporters of a free and independent press and we greatly admire the Evening Standard as an iconic publication with its pedigree of fine journalism and commentary. We are committed to strengthening the newspaper’s competitiveness and look forward to working with Associated, which will continue to be involved as a minority shareholder.”
The deal is expected to be completed in February following an employee consultation process.
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