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Johnston Press to sell island weeklies to Tindle in £4.25m deal

Tindle Newspapers is to buy three newspapers and a companion website on the Isle of Man from Johnston Press for £4.25m.

The two companies have announced the agreement, which will see Tindle take control of the Isle of Man Examiner, Isle of Man Courier, Manx Independent and www.iomtoday.co.im.

The sell-off is the first since JP revealed in January that it was exploring possible asset sales to help fund investment and pay down net debt.

The sale follows what has been described by JP as a “competitive tender process”.

Isle of Man Courier

JP chief executive Ashley Highfield said: “This disposal is further progress in executing our divestment strategy and allows the group to realise immediate value from our Isle of Man assets.

“I would like to thank the staff of our Isle of Man business for their loyalty and dedication over the years and we wish them well for a successful future.”

In January, JP said titles which could be sold off include those that are outside of selected markets, do not match its “audience focus” or do not offer the desired levels of digital growth.

Its Isle of Man portfolio had all been categorised as ‘core’ titles in a list sent to staff at the same time.

Newspapers listed in this group were described as making “a significant contribution and are important brands which sit right at the heart of Johnston Press”.

Isle of Man Newspapers Limited recorded a profit before tax of £598,000 (£632,000 before exceptional items) for the year ended 31 December 2015 and had gross assets of £1.78m at that date.

Tindle Newspapers chairman Sir Ray Tindle said: “Buying a profitable local weekly set-up such as the Isle of Man trio is certainly a departure from our early days when, without much cash, we mostly bought papers that were in trouble, or we had to launch them ourselves.

“We are most grateful to Ashley Highfield and his colleagues for all their assistance in bringing about this agreement.”

“We are unable to meet the whole of the staff until completion of the agreement takes place but I have asked Ashley and his colleagues Jason and Trudi and Warren kindly to convey to everyone that vice chairman Wendy Craig and I, and everyone at Tindle Newspapers, will make them all very welcome just as soon as we are able to do so.”

9 comments

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  • July 4, 2016 at 1:54 pm
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    That seems like a bargain for Sir Ray for a little goldmine which is already posting a useful return, and sets a marker for parts of JP – particularly those on the edges of the tottering empire, where the staff would surely vote for an exit if a white knight came riding by. Please form an orderly queue…

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  • July 4, 2016 at 4:18 pm
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    This is just the start of the fire sale. Shares at an all time low, company barely solvent but Ashley is still in charge. How?

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  • July 4, 2016 at 5:29 pm
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    Great deal for Mr Tindle, £2.5m in reality if you minus the assets, with a good annual profit. Just £20m more to flog off to cover the i purchase. Company value is just £17m as shares are at an all time low

    I sold my employee free shares a few years ago for £1100 (mostly tax free), today they would be valued at £14 which wouldn’t cover the shares transaction sale cost. I feel sorry for the investors who have taken a huge hit.

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  • July 4, 2016 at 5:57 pm
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    The city has reacted well. Shares in this zombie company are down more than 7% today at 16p. A year ago they were 145p. Some performance.

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  • July 5, 2016 at 9:15 am
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    Great news for everyone who works there. I grew up in a rough estate and as a kid once wrote to the Isle of Man for asylum even though I’d never been there – true story.

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  • July 5, 2016 at 9:43 am
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    The old maestro strikes again. Sir Ray really must listen to the newspaper management experts like… They will tell him that apart from their obscene bonuses there is no money in newspapers. Good luck Sir Ray and the Isle of Man papers. I recall he bought a larger holding of JP shares for pennies. Is this the start of something big?

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  • July 5, 2016 at 12:26 pm
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    The great sale is on. Expect a bunch of closures of loss making weeklies in night of the long knives!

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  • July 6, 2016 at 3:08 pm
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    The slump continues. Another 15% drop today. Shares down to 13.5p.

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