INDEPENDENT News & Media has entered into a binding agreement for the sale of its South African business for approximately €170m.
The sale to Sekunjalo Independent Media Consortium is subject to INM bank consent as well as the approval of the South African Competition Commission, the company said today while net proceeds from the sale will be used to repay senior debt.
Commenting on the disposal, INM group chief executive Vincent Crowley said: “I am pleased to announce the agreed sale of INM SA, which is a key step in reducing Group debt and strengthening our balance sheet.
“The sale will mark the end of a long association with a company and a management team, ably led by Tony Howard, which has been mutually beneficial.
“I am very confident that, in Sekunjalo, and Dr. Iqbal Surve, the INM SA business will be in good hands and I have no doubt that the company will prosper well in the years ahead.”
He added the reduction in debt which the disposal will enable is an essential component to the delivery of an overall sustainable and appropriate capital structure for the Group while INM remains in constructive discussions with our banks in relation to the planned refinancing and will provide a further update in due course.
Further information on the sale will be contained in a circular to shareholders.