IN&M sells stake in Indian media group

by John Reynolds, mediaweek.co.uk 02-Jul-09, 16:00

LONDON - Independent News & Media (IN&M) has raised €22m after selling 22 million shares of its stake in Indian media giant Jagran Prakashan, as the company looks to pay down its debt.

The group, which owns The Independent newspaper, has sold a 7.3% stake in the media company, which will leave it with a 13.5% stake in the firm. It sold the stock on the Bombay and National Stock Exchanges.

The sale comes as IN&M bids to reach agreement with bondholders over a €200m bond, which, following an extension agreed last week, is due for repayment on July 24.

An IN&M statement said: "The gross proceeds from this share sale is approximately €22m, which will be used to pay down debt and enhance the liquidity of the company during the ongoing standstill period, including the repayment in full of the amount draw down on the €15m new working capital facility provided by the group's banks as part of the standstill agreement."

IN&M said it would remain a long-term investor in Jagran Prakashan Limited, which it originally invested €28.5m. It purchased a stake in 2005.