The Trader Media disposal, subject to regulatory approval and final completion, forms part of a five-year digital-first strategy that has delivered increasing advertising revenues, improved circulation figures and enhanced investment returns as GMG focuses on its core assets, says the company.
Andrew Miller, chief executive officer of GMG, said: “This proposed transaction makes strategic sense as we focus GMG’s activities on award-winning digital and print journalism. On completion, the sale-proceeds will strengthen our balance sheet and position us for further investment and growth in our core business.”
The Scott Trust Limited, the sole shareholder of GMG, has given its full support to the proposed transaction. The Trust has authorised the GMG Board to reinvest the proceeds in order to enable it to continue to safeguard the editorial and financial independence of the Guardian.
Neil Berkett, chair of the GMG Board, said: “Once completed, this deal will make GMG a very well-capitalised media organisation with the financial flexibility to navigate the rapidly-changing media environment, where our flagship titles are proven pioneers of digital and print innovation.”
The proposed sale of GMG’s 50.1% stake follows the group’s disposal in 2007 of a 49.9% stake in Trader Media Group, best-known for its Auto Trader branded website, to Apax. Financial terms for the sale of GMG’s remaining shareholding have not been disclosed.
Bank of America Merrill Lynch and Freshfields Bruckhaus Deringer have advised GMG on the transaction.
