Independent News & Media set for £20m cash boost

by Daniel Farey-Jones, Brand Republic 20-Jul-09, 09:15

LONDON - Indebted newspaper group Independent News & Media is in line for a £20m cash injection after a deal was struck for its minority-owned Cashcade online gaming business to be sold to Party Gaming.

The group behind The Independent and The Independent on Sunday is in need of the money to help refinance a €200m (£172m) bond which was originally due to be repaid in May.

It is also attempting to sell its price comparison business Verivox.

IN&M owns 20% of Cashcade, which Party Gaming is buying for £100m.

Party Gaming is understood to be paying £75m of this upfront and the remaining £25m at a later date depending on the business's performance this year and in 2010.

Details of the sum IN&M is due to receive were unavailable but if proportionate it is likely to receive £15m now and £5m at the later date.

IN&M's current "standstill" agreement with the holders of the €200m bond is in place until July 24.

The Sunday Times has reported that the agreement is expected to be renewed until late August or early September.

Earlier this month IN&M raised €22m (£18.9m) by selling 7.3% of India media giant Jagran Prakashan, leaving it still holding 13.5% of the company.

The acquisition of Cashcade, which owns well-advertised bingo website Foxybingo.com, is likely to be the first of many in the sector for Party Gaming.