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
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.
Who is the richest person in the world?
The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
By Vaishali Varu Published
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
By Ruth Emery Published