Mecom plans rights issue to raise up to £160m

LONDON - Mecom, the troubled European newspaper group run by former Mirror Group chief executive David Montgomery, is trying to raise fresh capital though a rights issue to help ease its financial difficulties.

Berliner Zeitung: one of the titles sold by troubled Mecom
Berliner Zeitung: one of the titles sold by troubled Mecom

In a statement to the City, the group said it was "in a strong position to secure a new platform of financing and financial security for the group".

Mecom, which owns more than 300 titles, is believed to be looking to raise between £100m and £160m to help offset its debt of about £600m, which includes a loan of £30.6m that must be repaid by 12 April.

The group today (Monday) held a general meeting, at which shareholders approved the group's sale of its German and North Norway assets, which will raise around £188m, as part of its move to raise capital.

Mecom, which owns titles in Scandinavia, Poland and the Netherlands, has looked to sell off parts of the business in a bid to raise money in recent months.

In January, it sold its German publishing operations, which includes titles such as Berliner Zeitung, Berliner Kurier and Hamburger Morgenpost, along with 10 websites, for around £135m.

Earlier this month, the group warned of heightened volatility around advertising markets, adding that it would have to make additional cost cuts to help offset falls in ad revenue.

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