Guardian to raise £600m from Trader Media sale

THE Guardian Media Group has confirmed it is selling its 50.1% stake in Auto Trader owner Trader Media Group to private equity firm Apax Partners.

The Guardian reported that the deal is expected to earn the newspaper publisher between £600m-£700m.

Apax bought 49.9% of the business in 2007 and its acquisition of the remaining shares has been expected for some time.

Trader Media has its headquarters in Reading but runs its digital operation from Newton-le-Willows, however, a move to central Manchester is being planned.

GMG chief executive Andrew Miller said: “This proposed transaction makes strategic sense as we focus GMG’s activities on award-winning digital and print journalism. On completion, the sale proceeds will strengthen our balance sheet and position us for further investment and growth in our core business.”

Neil Berkett, chair of the GMG board, said: “Once completed, this deal will make GMG a very well-capitalised media organisation with the financial flexibility to navigate the rapidly-changing media environment, where our flagship titles are proven pioneers of digital and print innovation.”

GMG, which is funded by the Scott Trust, made a £30m loss last year, down from £44m the year before.