Johnston Press sale at knockdown price

JOHNSTON Press newspapers in the Irish Republic is on the market at a knockdown price, maybe as low as €50 million, according to industry insiders.

Troubled British media giant Johnston Press has spent hundreds of millions acquiring these titles but has come under severe pressure during the downturn, which has seen it impose redundancies and rationalisation at its British-based titles.

The company, which owns key regional titles, including the Limerick Leader, Kilkenny People and Leinster Leader, spent €138m in 2005 acquiring the Leinster Leader Group, which also included the Limerick Leader.

That same year the company spent €233m acquiring Score Press from Scottish Radio Holdings when it added Kilkenny People, The Nationalist, the Munster Advertiser and the Tipperary Star, as well as a large number of titles in Northern Ireland and Scotland.

The company will find it hard to secure a buyer at a time of declining revenues within the industry.

Johnston Press chief executive John Fry did not return a call seeking a comment yesterday.

However, on Thursday Mr Fry told members of his Irish management team at a private meeting in Naas that all the titles in Ireland were for sale.

It is understood that Mr Fry told managers that contact would be made with the former shareholders of the Leinster Leader and Thomas Crosbie Holdings (TCH), owners of the Irish Examiner.

Former Leinster Leader Group chairman, John McStay, who oversaw the sale of the group for €138m to Johnston Press said yesterday that he could not comment.

TCH group managing director Anthony Dinan said that TCH would definitely take a look at the titles on offer.

Johnston Press has written down the book value of its Irish titles.