SanomaWSOY's newspaper business, Sanoma Corporation, has decided to sell part of its shares in its associated company, Savon Mediat Oy, to Keskisuomalainen Oyj. Sanoma will sell 3,636 Savon Mediat shares to Keskisuomalainen and retain 7,229 shares. As a result of the transaction, which is valued at FIM 32.7 million and reflects a total company value of FIM 450 million, Sanoma's holding will be reduced from 21.73% to 14.46%, after which Savon Mediat will no longer be one of Sanoma Corporation's associated companies.
The reduction in Sanoma's holding in Savon Mediat is linked to SanomaWSOY's strategy, which was announced following the acquisition of the Consumer Information Group magazines business from VNU, under which SanomaWSOY intends divesting non-core assets.
In connection with the sale of Sanoma's shares, TS-Yhtymä Oy and Ilkka-Yhtymä Oyj have also sold a proportion of their shares in Savon Mediat to Keskisuomalainen, whose holding in Savon Mediat will now rise to 66.6%. These arrangements include an option, under which the vendors will have the right, as of June 1, 2004, to sell their remaining holdings in Savon Mediat to Keskisuomalainen for a combined sum of approximately FIM 100 million (plus a change in shareholders' equity), reflecting a total company value of FIM 300 million. As of the same date, Keskisuomalainen will also be entitled to buy the remaining outstanding shares in Savon Mediat for a sum of approximately FIM 122 million (plus a change in shareholders' equity), reflecting a total company value of FIM 366 million.
Vice President, Investor Relations and Group Communications
DISTRIBUTION: Helsinki Exchanges and Principal media