Daily Mail & General To Sell Entire 38.7% Stake In Local World To Trinity Mirror

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Daily Mail & General Trust Plc. (DMGT.L) said it has proposed to sell its entire 38.7 percent equity stake in Local World Holdings Limited, the UK regional news publisher, to Trinity Mirror plc (TNI.L). The transaction values Local World on a debt-free cash-free basis at 220 million pounds.

 Daily Mail & General noted that its share of the consideration on completion, net of transaction costs, will be 73 million pounds and will be paid in cash.

The proposed transaction will see all Local World shareholders dispose of the entirety of their respective shareholdings to Trinity Mirror, with Trinity Mirror acquiring all the shares in Local World in addition to its current 20 percent holding.

The purchase price for the 80 percent of Local World that is not already owned by Trinity Mirror is 154 million pounds. Trinity Mirror will also assume debt and debt-like items of about 27 million pounds at completion.

The transaction is conditional on approval by the shareholders of Trinity Mirror at a General Meeting expected to be held on or around 13 November 2015.

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