Business
Proposed Acquisition
Proposed Acquisition.
About this update from Reach Plc
[{"type":"text","content":"\n \nRNS Number : 3892E Trinity Mirror PLC 09 February 2018 \n\nTHIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.\n9 February 2018\nTrinity Mirror plc\nProposed acquisition of Northern & Shell's publishing assets\nTrinity Mirror plc (\"Trinity Mirror\" or the \"Company\") is pleased to announce the proposed acquisition of Northern & Shell's publishing assets for a total purchase price of £126.7 million. These comprise Northern & Shell Network Limited (\"NSNL\"), a subsidiary of Northern & Shell Media Group Limited containing the publishing assets of Northern & Shell and its subsidiaries, International Distribution 2018 Limited and a 50% equity interest in Independent Star Limited (the \"Acquisition\"). \nThe purchase consideration of £126.7 million will be satisfied by the payment to the Northern & Shell Media Group Limited (the \"Seller\") of, in aggregate, an initial cash consideration of £47.7 million; deferred cash consideration of £59.0 million payable over 2020 - 2023; and the balance of £20.0 million by the issue to the Seller of 25,826,746 new ordinary shares of 10p each (\"Consideration Shares\"). Trinity Mirror will also make a one-off cash payment of £41.2 million to the Northern & Shell Pension Schemes and a recovery plan through to 2027 has been agreed with total payments of £29.2 million.\nStrong strategic rationale\nThe Board believes the Acquisition creates a media business of scale to better serve our readers and advertisers, enabling the Enlarged Group to:\no Improve its print and digital editorial propositions by reducing duplication, sharing content and widening the breadth of editorial coverage with larger combined teams; \n \no Provide advertisers and agencies with a large, high quality audience, including a combined digital audience of 234 million monthly unique browsers (excluding apps); and\n \no Improve its digital products through shared investment and best practice.\n \nStrong financial rationale\nThe Board believes the Acquisition is financially compelling and will deliver attractiv...