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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

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