Grazia publisher in Emap talks

Media group and Heat magazine publisher Emap today said it had lined up the Italian publisher of women’s glossy Grazia as a possible buyer for its struggling French business.

Emap said it had entered into exclusive discussions with the Mondadori Group, which is one of Europe’s biggest publishers of consumer magazines.

The two companies already have a relationship as Emap secured the licence to launch a UK version of Grazia, a title started by Mondadori in 1938 as Italy’s first women’s magazine.

The French operation was put up for sale in February, with the company later reporting a 25% fall in annual profits for the division to £38m (€55.5m).

Analysts have put a value of more than £400m (€584.2m) on the Emap France business, which has struggled from falling news-stand sales and a lack of appetite among advertisers to use print media to promote their products.

Emap magazines reach around 50% of the French population every month with two of its most successful titles – Tele Star and Tele Poche – selling more than two million copies per week between them.

Emap said its believed a sale could be completed by the end of September if the process went to plan. As well as agreement with Mondadori, the company must carry out consultations with the workers’ councils of Emap France.

Emap has already said that proceeds from the sale will be returned to shareholders.

The company recently announced a 9% rise in annual profits to £223m (€326m), after a strong performance in the UK from titles such as Closer, heat and Zoo. Emap also has a radio division comprising 40 local and eight national stations.