Anthony Catalano buys regional newspapers from Nine

Nine is selling regional newspapers to former Domain boss Antony Catalano for $125m.

Former Domain boss Antony Catalano. Pic: Stuart McEvoy

Nine Entertainment has sold its regional newspapers and printing business to former Domain boss Antony Catalano and Thorney Investment Group for a total of $125 million, five months after wrapping up its $4 billion merger with Fairfax Media.

The Australian Community Media and Printing titles, comprising more than 160 papers and including The Canberra Times, The Newcastle Herald, the Illawarra Mercury and The Border Mail, were acquired by Nine as part of the Fairfax deal.

Nine chief executive Hugh Marks said the sale of the titles aligned with its “strategy to exit non-core businesses and to focus on Nine’s portfolio of high-growth, digital assets”.

“We will retain a commercial relationship with ACM and look forward to continuing to work with the business in areas where there are mutual benefits to both Nine and ACM,” Mr Marks said in a statement.

Nine said the parties have agreed to “preserve the commercial relationships” that have existed during its ownership of ACM, including the printing of its metropolitan newspapers, The Age, The Sydney Morning Herald and The Australian Financial Review and, “for a short transitional period, sharing of content between ACM publications and the metropolitan publications.”

Under the sale agreement to a company controlled by interests associated with Mr Catalano and Thorney Investment, Nine will receive cash of around $115 from the sale, of which $10 million will be paid in 12 months, which will be used to pay down the group’s debt.

After the deal is completed, Nine will receive up to $10 million of advertising from ACM properties over the next three years.

The deal is expected to be wrapped up by June 30.

Mr Catalano spent 26 years with Fairfax and was chief executive of Domain for four years, leading the property classifieds business through its 2017 spinoff from Fairfax into a separately listed business.

He quit in January last year and failed in a last-ditch attempt in Federal Court to prevent the merger between Fairfax and Nine by buying a blocking stake in the old newspaper publisher.

Following the completion of the Fairfax merger on December 7, Nine flagged the sale of ACM, plus its events business, which produces the annual City2Surf running race in Sydney, and New Zealand division Stuff.

In a email to staff on Tuesday, Mr Marks said the company needs to “focus on our core business, while ensuring that each of those three is well placed for their next cycle, with an owner who is strongly positioned to capitalise on the opportunities in front of them”.

“With all three of these businesses we have seen a number of interested parties involved in the process. This is because they are all good and profitable, with strong teams and a vision for the future ahead of them,” he said.

“In the case of Stuff and Events, we will continue to speak with interested parties in the coming weeks and will work with both teams on the proposals being considered. I will keep you updated as things progress.”

Mr Marks said Mr Catalano and Thorney Investment are “well positioned to realise that future in a way that Nine as a public company would have limitations of doing”.

“I believe the change of ownership is positive and sets the business well on the path for the future.”