Nine Entertainment has sold its regional and community newspapers, including The Newcastle Herald and The Maitland Mercury.
The company responsible for the papers and a range of other Hunter publications, Australian Community Media, was acquired by Nine in its merger with Fairfax late last year and has now been sold to former Fairfax executive Antony Catalano and Thorney Investment Group.
The $125 million dollar deal is expected to be complete by the end of June, with Nine to receive an estimated $115 million dollars in cash proceeds and an additional $10 million dollars in advertising revenue over the next three years.
ACM and Nine have entered into arrangements to preserve their commercial relationships, including the sharing of content between regional and metropolitan publications during a short transitional period.
Nine CEO Hugh Marks said in a statement the sale is aligned with his organisation's strategy to exit non-core businesses and focus on its portfolio of high-growth, digital assets.
"We will retain a commercial relationship with ACM and look forward to continuing to work with the business in areas where there are mutual benefits to both Nine and ACM.”
ACM also owns The Maitland Mercury, Port Stephens Examiner, Cessnock Advertiser, Lakes Mail, Dungog Chronicle, Newcastle Star, Muswellbrook Chronicle, Singleton Argus and Scone Advocate.
ACM also owns The Maitland Mercury, Port Stephens Examiner, Cessnock Advertiser, Lakes Mail, Dungog Chronicle, Newcastle Star, Muswellbrook Chronicle, Singleton Argus and Scone Advocate.
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| Antony Catalano has purchased ACM along with Thorney Investment Group. Image: SMH |
