IN&M sells 49% stake in German site

Independent News and Media has sold its stake in German website Verivox for €18.3 million.

The 49 per cent stake in Verivox, which is an online price comparator for energy and telecom services, has been bought by a subsidiary of Oakley Capital Private Equity, VVX Investments.

The €18.3 million includes repayment of a €2.3 million loan made to Verivox by INM, with an extra €1 million payable in 2010 if Verivox achieves targeted EBITDA for 2009.

The Verivox Group had gross assets of €27.5 million at the end of 2008, and recorded €87,000 in consolidated profit for the year.

INM said the initial net proceeds of the deal would be in the region of €16 million and would be used to pay down senior debt.

INM is also expecting to dispose of its South African advertising business INM Outdoor this month, a move that shareholders had approved in November. Together with the Verivox sale, that would bring the total proceeds raised from disposals by INM in 2009 to about €150 million, in line with targets originally set out by the company earlier this year

The company last month said it had taken sufficient action to address its indebtedness for the next few years, and had no further plans to sell off more assets.

Earlier in November, the company had fought off resolutions put forward by minority shareholder Denis O'Brien to remove the company chairman and one of the board's directors after shareholders rejected them. they also voted against proposals to revoke the directors' power to allot and issue shares.