Northern Europe-focused publishing business Mecom Group has said it welcomes an announcement by the Norwegian Competition Authority that it has cleared the sale of Mecom Europe, the holding company of Edda Media, to A-pressen.
On December 5th last year Mecom announced that it had agreed the sale at a multiple of 7.2 times Edda Media's 2011 full-year consensus earnings before interest tax depreciation and amortisation (EBITDA).
The effective proceeds for the disposal of NOK 1,500m (£159m) were expected at that time to result in a net debt reduction of around €190m, but given the strengthening of the Norwegian Kroner against the Euro since December 2011, the net debt reduction on closing will actually be around €195m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
Mecom will receive an additional cash payment from A-Pressen for the free cash flow generated by Edda Media between December 31st 2011 and completion of the sale, which it anticipates will be received within three months of completion.
The share price rose 3.1% to 66.50p by 14:57.
NR
-
Trump wants to colonise Mars – will it happen?Donald Trump wants to plant the US flag on Mars. Could humans really live there?
-
Klarna postpones US IPO as Trump's tariffs rattle marketsBuy-now-pay-later lender Klarna has postponed its US initial public offering owing to the market turbulence. It is not alone, says Matthew Partridge
