Svenska Dagbladet has entered into an agreement with Dagens Nyheter to acquire 50% of the distribution company Pressens Morgontjänst (PM). DN owns the remaining 50%. PM distributes newspapers in the Stockholm region, among others SvD, DN and Dagens Industri. Previously SvD owned 20% of PM but in connection with Schibsted’s acquisition of SvD, DN exercised its right to acquire SvD’s shares.
SvD will pay SEK 97.5 million for the 50% ownership. At the same time DN will withdraw its demand for compensation for SvD’s share of PM’s result from the time of Schibsted’s acquisition of SvD in 1998 and until DN was awarded the legal right to acquire SvD’s 20% ownership.
The agreement to acquire 50% and the new distribution agreement will result in approximately SEK 5-10 million reduction in SvD’s annual distribution costs. The annual distribution cost will be approximatley SEK 15 million lower than the cost of SvD’s own distribution company which has been under establishment.
The agreement is subject to approval by the Schibsted ASA Board of Directors’.