Trinity Mirror today announced a £14.2m deal for a 20% stake in the new regional newspaper company, Local World, run by David Montgomery.
Local World was created to acquire and operate the titles owned by Northcliffe Media, the regional newspaper arm of the Daily Mail and General Trust, and Iliffe News & Media.
announced on Wednesday that it had sold its Northcliffe Media
assets to Local World for £52.5m and will receive a 38.7% stake
in the new media group.
Local World will also be home to 63 local websites and a number of niche print products, including magazines.Steve Auckland
, currently chief executive of Northcliffe, will be chief executive of Local World, with Montgomery taking up the role of chairman. Rachel Addison, currently group finance director of Northcliffe, will be its chief financial officer.
Trinity Mirror chief executive Simon Fox
and its finance director, Vijay Vaghela
, will join the Local World board as unpaid non-executive directors.
The company, which so far doesn't include any Trinity Mirror
titles, will publish 16 daily titles, 36 paid-for weekly titles, 40 free weekly papers
and two Metro franchises
with a total weekly reach of 6 million people.Trinity Mirror
confirmed on 29 October that it was in talks about purchasing a minority stake in the venture.Iliffe News & Media
, part of the Yattendon Group which is owned by the Iliffe family, will be sold to Local World in exchange for a 21.3% stake
in the new business.
About Northcliffe Media
DMGT's Northcliffe Media division includes the Leicester Mercury, Bristol Post and Derby Telegraph. Iliffe News & Media publishes 39 titles such as the Cambridge News and the Hertfordshire Mercury.