Completion of the transaction, first announced in January, follows receipt of regulatory approval.
As a result, GMG has received £619m in cash for its interest. Including dividends and sale-proceeds, GMG will have secured total shareholder returns exceeding £1.4bn from its investment in Trader Media since 2007.
Andrew Miller, chief executive officer of GMG, said: “Completion of this transaction comes at an ideal time for GMG as we adapt to a rapidly-changing marketplace. The sale proceeds will transform our balance sheet, enabling GMG to deliver world-class journalism from a position of financial strength. We are extremely grateful to Apax for their contribution to our joint venture partnership and for the pivotal role they have played in the Auto Trader story.”
“Even before the gains from the Trader Media disposal, our underlying business is performing strongly in a volatile media environment. We are forecasting an increase of more than 20 per cent in our 2013/14 digital revenues – up from last year’s £56 million, to around £70 million – and net revenues are expected to have risen for the first time since 2008, up by more than 5 per cent to over £200 million in sales.”
The Scott Trust Limited, the sole shareholder of GMG, welcomed the improving business outlook and reiterated its commitment to use the Trader Media proceeds to safeguard the editorial and financial independence of the Guardian.
Dame Liz Forgan DBE, Chair of the Scott Trust, said: “We can look forward to an era of editorial innovation from the Guardian titles, which are proven pioneers of both journalism and digital distribution. The unique contribution made by the Guardian to national and international debate is now secure for generations to come.”
GMG will issue its full financial results for the 12-months ending March 31, 2014, later this year.
Bank of America Merrill Lynch and Freshfields Bruckhaus Deringer have advised GMG on the transaction.
