Independant News & Media relinquishes 7.4% stake in Indian publisher
Posted by Simon Day on July 3, 2009 at 9:48 AM
Independent News & Media (INM) has sold 7.4 percent of its stake in Indian publishing company, Jagran Prakashan (JPL), in order to pay down debt while the company continues to rearrange its €200 million debt load, Media Guardian reported Thursday. The-Irish based media group has reduced its 20.8 percent share in JPL to 13.5 percent.
The company hopes to raise €22 million from the sale, which will be then used to "pay down debt and enhance the liquidity of the company during the ongoing standstill period." The first €15 million will go to refund the working credit facility granted by the company's banks, as part of the standstill arrangement, in May.
The company hopes to raise €22 million from the sale, which will be then used to "pay down debt and enhance the liquidity of the company during the ongoing standstill period." The first €15 million will go to refund the working credit facility granted by the company's banks, as part of the standstill arrangement, in May.
The company initially invested €28.5 million in JPL, which owns Indian daily newspaper Dainik Jagran, in 2005. INM estimated that its remaining 13.5 percent stake is worth €42 million.
"The company is happy to confirm that it intends to remain a long-term investor in JPL and will not be disposing of any further shares," said INM.
"As a significant and long-standing shareholder in JPL, INM is very pleased with its remaining exposure to the fast-growing Indian newspaper market and looks forward to continuing to work with JPL and the Gupta family in successfully expanding its business interests across India."
The Indian company's flagship newspaper, Dainik Jagran, is published in 37 editions across 11 states in India. The company also publishes an English "infotainment" paper, 'City Plus,' Sakhi, a monthly woman's magazine and Jagran Varshiki, an annual general knowledge publication.
"The company is happy to confirm that it intends to remain a long-term investor in JPL and will not be disposing of any further shares," said INM.
"As a significant and long-standing shareholder in JPL, INM is very pleased with its remaining exposure to the fast-growing Indian newspaper market and looks forward to continuing to work with JPL and the Gupta family in successfully expanding its business interests across India."
The Indian company's flagship newspaper, Dainik Jagran, is published in 37 editions across 11 states in India. The company also publishes an English "infotainment" paper, 'City Plus,' Sakhi, a monthly woman's magazine and Jagran Varshiki, an annual general knowledge publication.
0 TrackBacks
Listed below are links to blogs that reference this entry: Independant News & Media relinquishes 7.4% stake in Indian publisher.
TrackBack URL for this entry: http://www.editorsweblog.org/mt/mt-tb.cgi/18704
Leave a comment