DMGT Holds On To Northcliffe

Daily Mail and General Trust (DMGT) has announced that it will not be selling its regional newspaper division, Northcliffe Newspapers.

After completing a strategic review of the business, DMGT, concluded that further improvements could be made to the newspapers, resulting in improvements in cost and revenue prospects.

The Board received three offers for Northcliffe at the beginning of February, but claims that these did not reflect the long-term value of the business.

DMGT believes Northcliffe has valuable long-term franchises, which will continue to play a vital role in their local communities as well as delivering greater value to shareholders than a sale in the current trading conditions.

The newspaper publisher announced plans to sell Northcliffe last November, with the decision to go ahead made after a strategic review of the business revealed the need for restructuring in order to compete with competitors such as Trinity Mirror and Johnston Press (see Northcliffe Sale Marks ‘Turning Point’ For DMGT).

Northcliffe, which currently owns over 100 regional titles, could be worth around £1.6 billion to a competitor or private equity firm, according to analysts.

DMGT previously claimed that Northcliffe’s performance had been impeded by industry consolidation, forcing prices to rise for the remaining independent titles.

The Daily Mail & General Trust: 020 7938 6747 www.dmgt.co.uk