UK’s Independent exits Jagran Prakashan with stake sale
04 Aug 2010
Independent News & Media Plc (INM) has sold its entire 6.5-per cent stake in Indian newspaper publisher Jagran Prakashan, according to reports that caused Jagran Prakashan stock to fall by as much as 4 per cent today.
Independent News & Media Investments Ltd has reportedly sold its stake in Jagran Prakashan back to the promoters for over Rs200 crore.
The 100-per cent subsidiary of the UK-based media company sold its shares in Jagran at Rs118 apiece.
ICICI Securities was the sole advisor to Independent News & Media on this transaction.
INM had acquired a 26-per cent stake in Jagran in 2005 at Rs467 per share from Jagran's promoters. But it has been selling its stake in Jagran since July 2009 as a part of its strategy to exit non-core assets.
Recently, INM had sold around 14.8 per cent of its stake for Rs410 crore in two tranches. It sold 7.5 per cent in March and another 7.3 per cent in July 2009.
INM is the owner of loss-making newspaper Independent of the UK. It had a successful debt restructuring in 2009 and secured a new four-and-a-half-year bank package.
The company in March revealed that it had reduced debt levels by €266 million in 2009.
Recently, it had raised €92.2 million euro through a rights issue and had completed the sale of Independent to Alexander Lebedev. Independent titles lost £12.4 million in 2009.