Owners reorganize the activities of the publishing company AS Ajakirjade Kirjastus 21.02
According to the agreement, Ekspress Meedia, the subsidiary of Ekspress Grupp, will take over the publishing of the monthly magazines (Eesti Naine, Anne ja Stiil, Pere ja Kodu, Oma Maitse, Tervis Pluss and Jana) and the weekly magazine Kroonika belonging to the AS Ajakirjade Kirjastus. AS Ajakirjade Kirjastus together with the rest of publications will be merged with AS SL Õhtuleht; after the merger the name of the new legal entity will be AS Õhtuleht Kirjastus. The merger will be completed in 2018. The transaction must be confirmed by the Competition Authority. Until then, the AS Ajakirjade Kirjastus will continue its activities separately. The ownership structure of the newly merged firm AS Õhtuleht Kirjastus will not change. As before, the Ekspress Grupp will own 50% and Suits Meedia 50% of the company.
The reorganization will be carried out to enhance future perspectives of the magazines. The main goal of the reorganization is to create a better online-output of the content of printed magazines of Ajakirjade Kirjastus, integrating these more tightly with strong digital publishing platforms of the owning companies Eesti Ekspress and Suits Meedia. In 2018 it makes no sense to start contributing to the construction of a new large online center, rather it would be reasonable to find synergy with the existing platforms, i.e. Delfi and Õhtuleht. There is no intention to close any of the currently published magazines. For subscribers of magazines all subscriptions will remain as they are at the current moment.
Ekspress Group’s 2016 consolidated revenue was
63 million euros including its joint ventures’ share 50%. Sales revenue of the
magazines to be obtained 100% by Ekspress Grupp will be after the transaction
fully recognized in the Group’s consolidated sales revenues. Their annual impact
to the consolidated figures will be ca 2 million euros.