Metro International S.A. (“Metro”), the international newspaper group, today announced that it has sold part of their interest in the English speaking part of Canada (“Metro English Canada”) to its JV partner, Torstar. The transaction closed on October 14th 2011.
The sale is of 40 percent of the effective economic interest in Metro English Canada for a consideration of €37.0 million pre-tax value as well as yearly franchise fees. Metro will continue to hold the remaining 10 percent of the equity and will have representation on the Board.
Metro partnered with Torstar, one of the largest media companies in Canada, in 2001 in Toronto. After expansion in a number of cities across Canada, Metro is today the most read newspaper in the country reaching 1.4 million daily readers nationally (source: NADbank 2010). In 2010, revenues from English speaking Canada were €54.2 million, and the EBIT was €10.2 million.
Anders Kronborg, CFO of Metro International and EVP Metro Canada: “Metro Canada has been growing steadily over the years and is an attractive newspaper operation. Our opinion is that the offer received represents a good value. Torstar has a good opportunity to further explore synergies with their existing media operations and are well equipped to continue Metro Canada’s expansion online. We look forward to working closely with them also in the future.”
Due to the divestment of the major stake in Metro English Canada, one of Metro’s largest operations, and other divestments in mature markets like France earlier this year, Metro will be able to focus even more on emerging markets like Latin America. Metro therefore aims to present a somewhat updated strategy in December 2011, which will be looking further into the emerging markets.
For further information please visit www.metro.lu or contact:
|Anders Kronborg||CFO and EVP Canada||Tel: +44 (0)79 12 540 800|
|Azhar Damad||VP Finance||Tel: +46 (0)70 415 95 31|
ABOUT METRO INTERNATIONAL AND METRO
Metro is the largest international newspaper in the world. Metro is published in over 100 major cities in 22 countries across Europe, North & South America and Asia. Metro has a unique global reach – attracting a young, active, well-educated Metropolitan audience of over 17 million daily readers.
Metro International S.A. shares are listed on Nasdaq OMX Stockholm through Swedish Depository Receipts of series A and series B under the symbols MTROA and MTROB.