Independent News & Media PLC (“INM” or “the Company”) has announces that it has sold 22 million ordinary shares in Jagran Prakashan Limited (“JPL”) on the Bombay and National Stock Exchanges in India.
This sale represents approximately 7.3% of the issued share capital of JPL and reduces INM’s holding in JPL to 13.5% (previously 20.8%). Having originally invested Ã¢â€šÂ¬28.5 million to acquire its stake in 2005, following this share sale, INM’s remaining holding in JPL is worth c. Ã¢â€šÂ¬42 million at current market price.
The gross proceeds from this share sale is approximately Ã¢â€šÂ¬22 million, which will be used to pay down debt and enhance the liquidity of the Company during the ongoing Standstill period including the repayment in full of the amount drawn down on the Ã¢â€šÂ¬15 million new working capital facility provided by the Group’s banks as part of the Standstill Agreement.
The Company is happy to confirm that it intends to remain a long-term investor in JPL and will not be disposing of any further shares. 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.