Metro International S.A. ("Metro") today announced that it has entered into an agreement for the sale of its Greek operation to Voisins Limited. As a part of this transaction, Metro has entered into a franchise agreement with the new owners who will continue to publish the Metro newspaper in Greece.
The transaction will result in a one-off cost for Metro of approximately €1.8 million, of which €0.2 million is the expected cash expense. The transaction was completed today and from 1 June Metro Greece will no longer be consolidated in Metro's books. Metro is expected to receive revenues under the new franchise agreement from 2012 onwards. Investment Bank of Greece, member of Marfin Popular Bank, acted as sole financial advisor to Metro in connection with the transaction.
Fragiskos Monogios, Managing Director of Metro Greece, commented: "The strong history of Metro Greece and Metro's attractive brand name in the free newspaper market were instrumental for Voisins to invest in Metro Greece despite the challenging environment currently faced by the Greek media industry. The change of ownership means business as usual for Metro Greece and we look forward to continuing to provide the high quality news reporting that our audience has been accustomed to for over 10 years."
Per Mikael Jensen, President and CEO of Metro International, added: "The divestment from Greece is one of several transactions that Metro has completed in order to free up resources to invest in emerging markets in line with our corporate strategy. At the same time, the deal allows us to maintain our existing global reach and pan-European distribution platform, which is important to our international advertisers. We believe the new owner of Metro Greece is in a better position to develop the business. Given the macroeconomic environment in Greece, I am satisfied to have succeeded in reaching an agreement which allows the continuation of the operation as a franchise."
For further information please visit wwww.metro.lu or contact:
Per Mikael Jensen, President & CEO +46 8 120 570 00
Anders Kronborg, CFO +46 8 120 570 00
Linda Fors, Head of Investor Relations +46 704 15 95 30
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ABOUT METRO INTERNATIONAL AND METRO
Metro is the largest international newspaper in the world. Metro is published in over 100 major cities in 19 countries across Europe, North & South America and Asia. Metro has a unique global reach - attracting a young, active, well-educated Metropolitan audience of 17 million daily readers.
Metro International S.A. shares are listed on Nasdaq OMX Stockholm through Swedish Depository Receipts of series A and series B under the symbols MTROA and MTROB.
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