IN&M may yet acquire Trinity stable

IRISH Independent owners, Independent News & Media, may yet get their hands on Trinity Mirror’s stable of Irish newspapers.

This is despite being out of the race to acquire the titles which include the Belfast Newsletter and the Derry Journal.

Debt-ridden IN&M is currently disposing of newspaper assets in Britain and is unlikely to pursue the titles at this stage.

However, industry sources speculate that a successful bid by British venture capital company HgCapital could end in a profitable exit strategy by way of a trade sale of some of the newspapers to the Independent group in a few years time.

Former Independent Newspapers (Ireland) managing director David Palmer, 62, has teamed up with HgCapital as they prepare to put in a bid in the region of 56m for Trinity's remaining Irish newspapers.

The titles for sale include: The News Letter in Belfast, the Belfast News and Farming Life, Derry Journal, Donegal Democrat, Donegal People's Press, Letterkenny Listener, Foyle News and the City News.

However, because of IN&M's strong position in the east of Ulster, through the highly profitable Belfast Telegraph, it is unlikely they would be allowed purchase the News Letter. Trinity Mirror plc was forced by the competition regulator to sell the Newsletter to be allowed to expand in the region.

HgCapital will not have it all their own way as the former chair of the Northern Irish Tourist Board Roy Baillie, ex-Mirror chief executive David Montgomery, Irish Examiner owner Thomas Crosbie Holdings, Archant, the Leinster Leader group and media giant Gannett are all reported to be interested in acquiring some or all of the titles. Other private equity players like 3i, Electra and Permira cannot be ruled out either at this stage.

However, it is understood none of the potential bidders have received the "Information Memorandum" on the assets which are for sale from Trinity Mirror's advisors on the disposal UBS Warburg.

TCH managing director Anthony Dinan said the company is awaiting receipt of the Information Memorandum before making any further decisions on the Trinity Mirror disposal.