Daily Mail completes sale of regional newspaper arm

Daily Mail and General Trust on Monday said it has completed the disposal of regional newspaper arm Northcliffe Media to Local World.

The media company sold the newspaper for £52.5m in cash proceeds and shares representing a 38.7% stake in Local World.

The Iliffe family, owners of Yattendon Group, have sold Iliffe News & Media to Local World in exchange for a 21.3% shareholding in the new business and Trinity Mirror has acquired a 20% interest.

The remaining Local World shares were purchased by investors including Artefact Group, an investment fund associated with Lord Ashcroft, and Odey Asset Management.

Northcliffe Media earned operating profits of £26m from revenues of £213m for the year ended September, 2012.

DMGT said it incurred £10m of exceptional operating costs for the business during the year.

The transaction follows last November's disposal of Associated Neswpapers' digital assets in central and eastern Europe for cash proceeds of €32m.

Shares rose 0.35% to 571.00p at 13:18 Monday.

RD