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North Media Newspapers acquires five local Copenhagen newspapers to enhance strategic focus on the metropolitan area.

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16 December 2016

Company announcement no 12-16

North Media Newspapers will acquire the publishing rights to Lokalavisen Frederiksberg, Lokalavisen Østerbro, Lokalavisen Vesterbro, Lokalavisen Valby and Lokalavisen Vanløse effective from 1 January 2017. The newspapers acquired will improve North Media Newspapers’ position in both mid-week and week-end issues. This agreement means an improvement of the commercial basis.

In 2016, North Media Newspapers has taken some strategic steps involving divestment and closure of a number of newspaper editions and a major restructuring of the organisation. This has resulted in a smaller and more focused newspaper business centring on Copenhagen and North Zealand. ”Through this acquisition, North Media Newspapers will enhance its unique market position in Copenhagen and to a greater extent be able to develop offers catering for the needs of Copenhagen advertisers. One of the means to do this is by thinking all of North Media Newspapers’ media platforms into one package. We expect that the integration of the local newspapers and the ongoing work of also implementing a new digital platform will be completed in H1 2017,” says Gorm Wesing Flyvholm.

”Michael Engelbrecht has very competently published local newspapers in Copenhagen for a number of years. I am very pleased that we have signed an agreement to acquire his newspapers and that we also take over nine skilled primarily editorial and commercial capacities that are now to be integrated in our organisation,” continues Gorm Wesing Flyvholm, Chief Executive Officer of North Media Aviser A/S.

The owner too of the five local newspapers, Michael Engelbrecht, considers it the right time to divest his newspapers, although it has been a difficult decision.

”I have now been in the publishing business for 12 years together with my capable staff. It has been our ambition from day one to be an alternative to the established players in the market. I am proud of what we have achieved together, however, I also admit that over the years the conditions for a small private publisher have become more and more difficult. I am very pleased that it is North Media Newspapers, who will now be carrying on the business and so drive the necessary consolidation,” says Michael Engelbrecht, Chief Executive Officer of Udgiverselskabet af 18/5 2009 ApS.

The newspapers have been acquired by way of a transfer of assets. The purchase price is DKK 6.5 million which is settled in cash. The acquisition will take effect from 1 January 2017.

The newspapers acquired are expected to generate revenue of approximately DKK 12 million in 2016. The acquisition has no bearing on the Group’s or North Media Newspapers’ earnings expectations for 2016.

Further information:

Gorm Wesing Flyvholm, Chief Executive Officer of North Media Aviser A/S, +45 25 45 67 74 or

Michael Engelbrecht, Chief Executive Officer of Udgiverselskabet af 18/5 2009 ApS, +45 22 66 89 91.

Yours faithfully

North Media A/S

 

Kåre Stausø Wigh

Group Executive Director & CFO

This document is an unofficial translation of the Danish original. In the event of any inconsistencies, the Danish version shall apply.

 

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