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 14(th) 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.
[HUG#1555087]
Sale of Stake in Metro English Canada
| Source: Metro International S.A.
Attachments
