GMG preparing write down of Emap investment

Guardian Media Group is preparing to write down its investment in Emap by between £100 million  and £200 million, according to a report in the Sunday Times.

GMG bought the business with private equity group Apax in 2008 for £1 billion, with GMG paying £300 million for its stake.

The owner of Guardian News & Media suffered a pre-tax loss of £89.8 million last year, and this latest move could see it report a loss for the second year running.

GMG told the Sunday Times: “The substantial reduction in Emap’s debt will mean the technical covenant issue is resolved, the company is well placed to take advantage of economic recovery, and it has the headroom to grow.

“Any impairment of our investment would be an accounting technicality, a paper loss with no impact on the company’s cash position.”