INM sells SA interests for €170m

Independent News and Media (INM) has sold off its extensive South African newspaper business for €170m as it battles to reduce its €420m debt mountain.

However, the asset sale delivered far less than the initial sale estimates of around €240m and the disposal of Independent News and Media South Africa (INMSA) will now deliver R2bn (€169.1m) gross from the sale, which industry sources estimated to be a respectable seven times EBITDA (earnings before interest, taxes, depreciation and amortisation). Yesterday, the board of Independent News & Media confirmed it has agreed detailed heads of terms with Sekunjalo Independent Media Consortium for the sale of INM South Africa for R2bn.

“The disposal of the South African business will require both INM shareholder approval and Competition Commission approval in South Africa.