The Board of Directors of Orkla ASA has authorised the Group management to conclude an agreement with the British media company Mecom regarding the sale of Orkla Media. This solution will ensure that the whole Orkla Media group will continue to operate as a leading media company in Norway, Denmark and Poland under new ownership. A final agreement is expected in the middle of July.
Orkla intends to become a significant shareholder in Mecom. The size of Orkla's shareholding has not been finally determined. Mecom is currently listed in London. The company's ambition is to develop a leading European media company. Orkla Media will be a core element of this strategy.
In the event of its purchase of Orkla Media, Mecom Europe's operational head office will be located in Oslo. Mecom wishes to continue to build on the present management, organisation and publishing principles of Orkla Media.
In the ongoing sales process, several alternatives have been thoroughly examined, including a Nordic solution for Orkla Media. Such solutions have not proven to be viable.
"Mecom's offer for Orkla Media is financially attractive for Orkla shareholders. Furthermore, the solution is satisfactory with regard to the other goals that were set for the process. Based on an overall assessment, this is therefore the best solution for both Orkla shareholders and Orkla Media," says Group President and CEO Dag Opedal.
Ref.: Ole Kristian Lunde, SVP, Corporate Communications Tel.:+47- 22 54 44 31
* Orkla Media's ownership in Hjemmet Mortensen and Orkla Media Germany are not included in this transaction.