Johnston Press PLC Response to Media Speculation (7260O)
February 11 2016 - 2:00AM
UK Regulatory
TIDMJPR
RNS Number : 7260O
Johnston Press PLC
11 February 2016
Johnston Press plc
Response to media speculation
The Board of Johnston Press plc (the "Company") notes the recent
media speculation and confirms that it is in late stage discussions
with Independent Print Limited ("IPL") for the potential
acquisition of the business and certain assets of the i. There can
be no certainty that the discussions between the Company and IPL
will lead to any definitive agreement concerning the possible
acquisition or as to the final terms of any such agreement.
Completion of the acquisition would be subject to the approval of
shareholders of the Company.
The consideration for the proposed acquisition is likely to be
GBP24 million, to be provided from the Group's existing cash
resources. In the year ended 30 September 2015, the i had unaudited
carve-out operating profit of GBP5.2 million.
The Board of the Company believes that, if consummated, the
acquisition would provide the following key benefits:
-- Greater reach: The combination would create the UK's fourth
largest print publisher with over 600,000 paid copies a day
-- Increased scale: Greater reach would improve the ability to
gain a greater share of the national advertising market
-- Growing revenues: i has growing circulation revenues, and new
opportunities arise from: a proposed digital product; new
geographic markets; and from potential cross-selling of i's
advertiser base and vice-versa
-- Accelerated digital transformation through: leveraging
Johnston Press' digital expertise to fully realise the i brand
across digital platforms; the extensive Johnston Press network
enables cross-promotion to grow audiences at minimal cost; it is
expected that the regionally-oriented digital display network 1XL
will be enhanced by the addition of a national brand.
It is also expected that the acquisition would be cash
generative and immediately earnings enhancing.
A further announcement will be made when appropriate.
Enquiries
Bell Pottinger
Dan de Belder 020 3772 2561
This information is provided by RNS
The company news service from the London Stock Exchange
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