April 10, 2017 / 5:45 AM / 4 months ago

BRIEF-Sanoma sells Dutch TV Business SBS to Talpa; 2017 outlook improved

April 10 (Reuters) - SANOMA OYJ

* SANOMA SELLS THE DUTCH TV BUSINESS SBS TO TALPA – OUTLOOK FOR 2017 IMPROVED

* HAS AGREED TO SELL ITS 67% STAKE IN DUTCH TV BUSINESS SBS TO TALPA BROADCASTING HOLDING B.V. FOR A NET CASH CONSIDERATION OF EUR 237 MILLION

* WILL OBTAIN 100% OWNERSHIP OF TV GUIDE BUSINESS VERONICA UITGEVERIJ AS PART OF TRANSACTION

* THIS IMPLIES A 12.6X 2016 EV/EBITDA MULTIPLE FOR SBS

* DIVESTMENT IS SUBJECT TO CLOSING CONDITIONS INCLUDING CUSTOMARY REGULATORY APPROVALS AND IS EXPECTED TO CLOSE IN Q3 OF 2017

* SANOMA'S NET FINANCIAL DEBT (PRO FORMA 2016) REDUCES FROM EUR 786 MILLION TO EUR 539 MILLION AND NET DEBT / ADJUSTED. EBITDA DECREASES FROM 3.2X TO 2.5X

* DIVESTMENT WILL RESULT IN A NON-CASH CAPITAL LOSS OF EUR 313 MILLION

* OUTLOOK FOR 2017 IMPROVED, DIVIDEND POLICY UNCHANGED

* EXPECTS THAT IN 2017 GROUP'S CONSOLIDATED NET SALES ADJUSTED FOR STRUCTURAL CHANGES, INCLUDING DIVESTMENT OF SBS, WILL BE STABLE AND OPERATIONAL EBIT MARGIN WILL BE ABOVE 10%

* AFFIRMS THAT NEW DIVIDEND POLICY AIMING FOR INCREASING DIVIDENDS WILL NOT BE IMPACTED BY SBS DIVESTMENT Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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