GMG sells Auto Trader shares

<p>GMG has raised between £600 million and £700 million from the sale.</p>

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.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.