News Letter owner accepts takeover bid from its largest shareholder

The National World board has given its backing to an all-cash offer from Media Concierge, in a £65.1 million takeover deal worth 23p a share.

The purchase of the company, a move which will result in National World being delisted and entering private ownership, is now subject to a full shareholder vote.

A National World spokesman said: “The board remains in control of the business and that means remaining open to the possibility of a superior offer whilst continuing to pursue its strategic priorities.”

The News Letter is the oldest English language daily newspaper in the world.

Media Concierge, which already owns a 28% stake in National World, runs a raft of local newspapers in Ireland as well as direct mail and advertising operations.

The recommended deal comes after National World rejected a previous potential offer from Media Concierge, worth £56.2 million, or 21p per share, which was put forward last month.

Media Concierge has given assurances not to make “material” job losses across editorial and production teams, which account for around two-thirds of employees at National World, or to close any local news brands.

But the firm warned there could be “material job reductions in areas of overlap” across the two companies as it looks to make savings following the deal.

It said: “Once National World ceases to be a listed company, a limited number of public company-related functions may become unnecessary and therefore be reduced in scope. “However, Media Concierge has not yet developed any firm intentions in this regard.”

Media Concierge added: “No proposals have been developed as to how any such reduction will be implemented, but Media Concierge would approach any such plans in an open and transparent manner.”

It also plans to shift National World’s headquarters from Leeds to London, but retain the office in Leeds and not shut any locations across the UK.

“Media Concierge intends to invest in the company’s editorial output and preserve the nature of local journalism, and as a result does not intend to close down local newsbrand locations,” it said.

The potential buyer is among the original backers of National World, which snapped up regional newspaper publisher JPI Media for £10.2 million in 2020.

The News Letter was launched by Francis Joy in 1737, then bought by a Scottish-based company in 1795, then in 1804 Alexander Mackay became the sole proprietor. He died in 1844, heralded the beginning of the Henderson family’s long involvement with the newspaper lasting almost 150 years. James Alexander Henderson was married to Mackay’s daughter Agnes.

In 1991 the paper was bought by Tindale Press, who sold it to the Mirror Group in the late 1990s. Then in 2004, the title was purchased by the 3i, being sold to Johnston Press the following year.

Johnston Press went into administration in 2018, and became JPIMedia, with ownership transferring to an American hedge fund, until NationalWorld bought the business at the end of 2020.