Capital’s ‘free-sheets’ agree merger terms after lengthy negotiations

THE Dublin newspaper market’s leading two daily “free-sheet” titles – Herald AM and Metro Ireland – have agreed merger terms, following long-running negotiations.

The move will, pending Competition Authority approval, result in one main free-sheet title for the greater Dublin area called Metro Herald, with a daily print run of 70,000 copies. It will be owned in equal shares by Herald AM’s current owner, Independent News & Media (INM) and Metro Ireland’s joint owners, Associated Newspapers and the Irish Times. The move, when completed, is thought likely to result in a number of job losses. However, that could not be confirmed yesterday.

“This is a great development for all three parties. This combination of two quality free daily titles ensures that, despite the difficult market conditions, Dublin commuters will continue to enjoy a free daily newspaper and advertisers will benefit from access to a young, urban audience,” commented Associated Newspapers’ (Free Division) managing director, Steve Auckland.

Meanwhile, INM has sold 7.3% of its shareholding in leading Indian media group, Jagran Prakashan Ltd (JPL), raising €22 million gross in the process. The move lowers INM’s stake in JPL from 20.8% to 13.5%.

The proceeds from the sale will mainly go towards reducing INM’s debt, which is currently hovering around the €1.4 billion mark.

It will also go towards paying back €15m which was made available by the group’s main bankers as working capital and to cover costs associated with the first extension of INM’s standstill agreement over refinancing negotiations with holders of its €200m bond.

INM said yesterday that it is not looking to lower its shareholding in JPL any further and intends to remain a long-term investor in the business.

“As a significant and long- standing shareholder in JPL, INM is very pleased with its remaining exposure to the fast-growing Indian newspaper market and looks forward to continuing to work with JPL and the Gupta family in successfully expanding its business interests across India,” the group said in a statement.