RNS Number : 3352G
Mecom Group PLC
28 June 2012
28 June 2012
MECOM GROUP PLC
REGULATORY CLEARANCE FOR EDDA MEDIA DISPOSAL
Mecom Group plc ("Mecom") welcomes today's announcement by the Norwegian Competition Authority clearing the sale (the "Sale") of Mecom Europe AS ("Mecom Europe"), the holding company of Edda Media AS ("Edda Media"), to A-pressen AS ("A-pressen"). It is anticipated that completion will take place shortly.
On 5th December 2011 Mecom announced that it had agreed the Sale at a multiple of 7.2 times Edda Media's 2011 full year consensus EBITDA. The effective proceeds for the disposal of NOK1,500 million were expected at that time to result in a net debt reduction of approximately €190 million. Given the strengthening of the Norwegian Kroner against the Euro since December 2011, the net debt reduction on closing will be approximately €195 million.
In addition, Mecom's sale and purchase agreement with A-pressen includes a conventional price adjustment mechanism such that, subject to the preparation and agreement of completion accounts, Mecom will receive an additional cash payment from A-Pressen for the free cash flow generated by Edda Media between 31st December 2011 and completion. Mecom anticipates that these incremental proceeds will be received within 3 months of completion.
A further announcement will be made when completion has taken place.
Tom Toumazis, Chief Executive Officer of Mecom, commented:
"We are delighted by the Norwegian Competition Authority's announcement today which will allow us to complete the sale of Edda Media, resulting in a further significant improvement in the Group's financial position. We are grateful to A-pressen for their co-operation throughout the past months and wish all our people at Edda Media well for the future."
Tom Toumazis +44 20 7925 7200
Ben Foster +44 20 3603 5220
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