Irish media group sells stake in Jagran Prakashan

Posted by Clara Martínez Turco on August 5, 2010 at 3:00 PM

Independent News and Media is withdrawing from India's newspaper market after selling its remaining 5.7 percent stake in Jagran Prakashan Limited, owner of the Dainik Jagran daily, for €32m (£26.5m), Media Week reported yesterday.

The Ireland-based publisher, which bought 26 percent of the shares in 2005 for €28.5 million, will use the money to pay off its bank loans, The Irish Times informed. The company started selling its stake a year ago and, overall, has received €96m (£79.6m).

"While we have been crystal clear that our immediate and continuing priorities are on reducing bank debt... and focusing on growing our market-leading brands in our core markets, it is fitting to recognize that our five year investment in JPL has been a highly profitable one for INM," Chief Executive Gavin O'Reilly said, the Press Gazette quoted. (Note: O'Reilly is also President of WAN-IFRA, of which this blog is part).

He also noted that Independent News and Media was the first "international media group to invest in the burgeoning Indian newspaper market in 2005," according to The Guardian.

Earlier this year, the company reported 2009 pre-tax losses of €31m (£27.4m), and had a debt of €1 billion (£829.5m) at the end of last year. One of its first moves to reduce the loans was to sell the Independent and Independent on Sunday to Russian billionaire Alexander Lebedev.