State to sell Edita publishing house to Alma Media company Talentum

More wrangling over Alma Media ownership expected after Christmas

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The upheavals in the Finnish media business continued on Wednesday, when the media company Talentum announced that it was buying the state-owned publisher Edita - formerly the State Printing Centre.
      The deal will make the state the largest shareholder of Talentum, right after Alma Media.
      Meanwhile, Alma Media, which is currently the target of a Norwegian takeover bid, announced on Wednesday that it is examining various arrangements in the Nordic television market. The Swedish Bonnier media house is expected to make a competing bid for Alma.
     
The acquisition of Edita will more than double the turnover of Talentum to about EUR 300 million a year, turning the company into a media giant on a par with Finland's public service broadcaster, the Finnish Broadcasting Company (YLE).
      According to Talentum CEO Harri Roschier, the main purpose of the deal is to get into a larger size class, and the next stages of development.
      The state will get about EUR 46 million in the deal, only EUR 16 million of which is in cash. The rest is in the form of Talentum shares. As a result, the state will have a holding of 20% in the new larger Talentum, and a seat on its board of directors.
      Already in 2002 the Ministry of Finance got Parliamentary authorisation to sell all of its shares in Edita, if necessary.
      Edita has been operating at a loss for the past five years. This year's losses are estimated at just under EUR 3 million.
     
Edita and Talentum have a combined personnel of more than 2,500.
      The merger of the two companies could eliminate some administrative jobs, but in the actual operations there is hardly any duplicated work.
      Talentum wants to increase its publishing operations, and to that end it is getting Edita's textbook and professional guide publishing operations, and its electronic services.
      Market reactions suggested that the price paid for Edita was not seen as excessive; Talentum's share price rose by about two percent on Wednesday.
     
Meanwhile, the wrangling over ownership of Alma Media continued on Wednesday, and is likely to heat up after a short Christmas break.
      The Swedish media house Bonnier is believed to be planning a counter-offer following the offer of a buyout made on Tuesday by the Norwegian Schibsted concern for Alma Media. Bonnier already owns one third of Alma Media.
      Analysts say that Bonnier will do all it can to hold on to the Swedish commercial television network TV4.
      Alma Media itself has indicated interest in rearrangements on the Nordic television market. On Wednesday the company said that already a month ago it had instructed Mandatum Investment Bank to assess options for a reorganisation of the television market in the Nordic Countries.


Previously in HS International Edition:
  Bid for Alma Media seen as prelude to shake-out in Nordic TV market (22.12.2004)
  Norwegian Schibsted Group seeking to buy Alma Media for EUR 705 million (21.12.2004)

Links:
  TALENTUM OYJ STOCK EXCHANGE RELEASE 22.12.2004: TALENTUM BUYS EDITA FROM THE STATE

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