Sanoma Corporation sold its holding in Savon Mediat to Ilkka Group
Sanoma Corporation, a division of SanomaWSOY Group, has sold its entire shareholding in Savon Mediat Oy, in total 7,229 shares, to Savon Mediat's minority shareholder Ilkka Group Plc. The price of the deal is about EUR 7.3 million. The deal is part of the arrangement signed and published in 2001.
Savon Mediat is a subsidiary of Keskisuomalainen. Savon Mediat publishes Savon Sanomat and through its subsidiaries Iisalmen Sanomat, Warkauden lehti and several local papers covering the market areas of Kuopio, Iisalmi and Pieksämäki-Varkaus.
The divestment is in line with SanomaWSOY's strategy to divest its non-core assets and holdings. Divestment of the 14.5 per cent minority holding in Savon Mediat is consistent with the Group strategy.
On 22 November 2001, SanomaWSOY published a transaction by which Sanoma Corporation sold 3,636 Savon Mediat shares to Keskisuomalainen. In this connection, also TS Group and Ilkka Group sold their Savon Mediat shares to Keskisuomalainen, after which Keskisuomalainen's participation in Savon Mediat increased to 66.6 per cent. These arrangements included an option, under which the vendors had the right, as of 1 June 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 has also been 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.
In connection with the option, the other minority shareholders had a pre-emptive right, which Ilkka Group Plc decided to exercise.