Sanoma divests majority ownership of Lehtimedia to Länsi-Savo Group
Sanoma Corporation, Stock Exchange Release, 10 April 2014 at 9:00 CET+1
Sanoma Media Finland divests its majority ownership in Sanoma Lehtimedia (publisher of newspapers in southeast Finland) and in local printing companies to the Länsi-Savo Group. Sanoma and the Länsi-Savo Group have signed a binding preliminary contract on the arrangement. The cooperation with Sanoma will continue.
The intention is to implement the arrangement so that Sanoma Lehtimedia, Sanomapaino printing companies, Saimaan Lehtipaino, Lehtikanta and Etelä-Savon Viestintä (owned by Länsi-Savo) will merge into a single company. The estimated completion of the first stage of the corporate arrangement is January 2015, and the company will fully transfer to the ownership of Länsi-Savo in five years.
At the first stage of the corporate arrangement, Sanoma will receive about EUR 10 million as the trade price, after which Sanoma's ownership in the company will be 49%. Jarmo Koskinen, the existing managing director of Sanoma Lehtimedia, has been appointed as the managing director of the new company.
Net sales of Sanoma Lehtimedia's media operations in 2013 totalled EUR 39.7 million. A total of about 300 people work in Sanoma Lehtimedia and the printing companies subject to the arrangement. Real estate companies owned by Sanoma Lehtimedia are not part of the corporate arrangement.
The divestment is in line with Sanoma’s strategy to focus its operations. "Our focus in Finland is on national and Helsinki region multichannel consumer media and the growing digital operations. Successful co-operation has taken place with Sanoma Lehtimedia in regard to digital media and content. The cooperation will now continue with the new company", says Pekka Soini, CEO of Sanoma Media Finland.
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