Archant today paid £52.0 million for three of the five newspaper divisions – ‘Post’, ‘East London’ and ‘North London’. The two remaining divisions – ‘Kent’ and ‘North West’ – are expected to be transferred on or after 30 December.
INM says that the deal with Archant represents better terms than an earlier proposed disposal of the businesses to Newsquest for £60.0 million. This deal was scuppered by the Competition Commission which blocked the sale of certain Kent-based titles to Newsquest on competition grounds (see INM Cleared For London Papers Sale To Newsquest).
Following the Commission’s intervention, a number of other suitors approached INM with a view to acquiring the businesses. One of these was the Daily Mail & General Trust’s Northcliffe Newspapers (see Northcliffe Looks At INM London Papers Bid). Today’s agreement with Archant is the culmination of these latter negotiations, says INM.
Ivan Fallon, chief executive of INM UK, said: “Since October, when the DTI made its decision in relation to the original proposed Newsquest deal, a number of suitors, including private equity funds, expressed interest in either buying all or some of our London Regionals. Having considered the merits of alternative offers, we have reached agreement with Archant, who we believe to be an ideal new owner.”
