Following the approval of the deal, which is designed to help SMG clear its £400m debt, the disposal is now expected to complete shortly.
The acquisition strengthens the position of Gannett, which owns USA Today, in the UK. Gannett, through its ownership of Newsquest, is one of the largest regional newspaper publishers in the UK, with a portfolio of nearly 300 titles.
SMG announced on December 23 that it had agreed the sale of its publishing division to Gannett, which was subject to an automatic referral to the DTI under the Fair Trading Act. SMG shareholders approved the disposal on January 24 2003.
Earlier this month, SMG reported earnings in line with expectations, down slightly at £65.6m, as the Virgin Radio owner and ITV broadcaster said that until the Iraq situation is resolved it was predicting advertising levels to remain subdued.
SMG said the successful completion of this sale would see it sharpen its focus on national advertisers and strengthen its balance sheet. SMG also confirmed it will pay a dividend for the year of 2.5p on completion of the deal.
Andrew Flanagan, chief executive of SMG, said: "We've achieved an excellent deal for an excellent business at a price that was well ahead of expectations. I'm confident that the business will continue to thrive under its new owner. Delivery of this transaction will provide us with both regulatory and financial flexibility, and we'll be well placed to capitalise on the opportunities that the Communications Act promises to present."
The sale of the publishing division, which also includes the Sunday Herald and the Glasgow Evening News, leaves SMG with its Scottish ITV business, Virgin Radio and its Pearl & Dean cinema advertising business.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
