David Montgomery’s listed vehicle, National World, and investment firm, Endless, have teamed up to offer a joint bid for Archant, one of Britain’s biggest regional newspaper publishers.
This comes as advisers of Archant, KPMG, were near to reaching a decision of the potential sale of the business.
Many offers were submitted, including that from a private equity fund and Newsquest, another big player in Britain’s struggling regional newspaper sector.
Mr Montgomerys’ joint bid with Endless marks his most recent attempt to get back into the sector of which he has had presence for decades.
Insiders say that a takeover of Archant is thought to see the company enter administration before being sold to new owners; this mechanism being a pre-pack administration. Deals of such a way would wipe out the interests of existing investors whilst alleviating the problem of tackling Archant’s large pension deficit which is tens of millions of pounds.
Archant is one of the oldest local newspaper owners in Britain, running since 1845. It publishes titles such as the Eastern Daily Press, The New European and London’s Ham & High Express. It put itself up for sale to seek funding to help save itself among its deficit made worse by coronavirus and its impact on advertising revenues.
The Colman family jointly founded the company with the Copeman family, who continue to own the business, headquartered in Norwich, employing almost 1,100 people.
Sky News report more.