Newspaper sold for €5m bought back for under €1m
Friday December 11 2009
JOHNSTON Press last night insisted it had "absolutely no plans" to revive efforts to sell its entire portfolio of Irish papers despite successfully off-loading the 'Tallaght Echo' to its former owner.
The UK plc is understood to have been paid well under €1m for the Tallaght paper, which will be formally passed to David Kennedy on January 4. Mr Kennedy sold the title for close to €5m in 2005.
Talks between Johnston Press and Mr Kennedy kicked off almost a year ago but were halted last February, when Johnston decided to try to find a single buyer for its 15 Irish titles.
Sales process
That sales process was abandoned in May, when Johnston admitted it had failed to attract sufficiently high bids, clearing the way for the resumption of talks with Mr Kennedy.
"It's a complete one-off," Johnston chief financial officer Stuart Paterson last night, dismissing as "complete rubbish" suggestions that his group had retained advisers to try to sell the remaining Irish papers.
Other sources also pointed to the low offers Johnston got last time round, believed to have come in at well below half the €70m they'd expected, as something which would impede a further sales effort.
Mr Kennedy is understood to be investing less than €1m in the deal, including the sale price to Johnston and fresh investment in the title.
"It's being purely funded by myself," he said last night, adding that the deal would create seven new jobs.
The Echo's circulation is understood to have shrunk to below 8,000, well below the 12,000 it enjoyed when Mr Kennedy sold up in 2005.
"It was making healthy profits when I had it and I'm confident that I can make profits with it again."
Mr Kennedy sold the title to the Leinster Leader Group, which was later hoovered up by Johnston.
- Laura Noonan
Irish Independent
