Guardian Media Group (GMG) has raised hundreds of millions of pounds through the sale of its stake in the Trader Media Group (TMG), which owns Auto Trader.
Estimates place the sale of the 50.1 per cent stake in the firm to private equity company Apax Partners at around £600 million to £700 million, which values TMG at £1.2 billion.
Andrew Miller, chief executive of GMG, explained that the deal makes "strategic sense" for the future of the company. He added: "On completion, the sale proceeds will strengthen our balance sheet and position us for further investment and growth in our core business."
Tom Hall, partner at Apax, added that TMG has played an "essential" role in the "extraordinary" transition of the Auto Trader brand from print publisher to "pure online".
He added: "We are proud to have played a part in this story, as very few consumer publishing companies in the world have achieved this transition."
GMG is best known in the UK for publishing the Guardian and the Observer newspapers.
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