LONDON (Alliance News) - Johnston Press PLC Tuesday said that it is selling its trading operation in the Republic of Ireland to focus on growing its business in the UK and digitally.
The newspaper publishing company said that it has entered into an agreement to sell Formpress Publishing Ltd, which holds the trade and assets of its Republic of Ireland operations, to Iconic Newspapers Ltd for GBP7.2 million in cash.
It said that following the disposal it will no longer have any trading operations in the Republic of Ireland, other than the retention of certain leasehold and freehold property interests.
Johnston Press said it will continue to provide printing facilities to Iconic Newspapers for a certain period of time after the disposal, and that certain leasehold properties will be sub-leased to Formpress post disposal.
The group said that it is retaining its Northern Irish titles including 'The Newsletter' and 'Derry Journal', which are also sold in the Republic of Ireland.
For the year ended December 28, 2013, Formpress Publishing reported an operating profit before exceptional items of EUR1.3 million.
"The disposal of our trade and assets in the Republic of Ireland will increase our ability to focus on the growth of our business in the UK and in particular our digital initiatives, in line with our stated strategy," said Chief Executive Officer Ashley Highfield in a statement.
Johnston Press shares closed Tuesday 5.7% higher at 23.25 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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