News Corp has agreed to sell its Premier property portfolio to Crico for $6.75 million, the company announced today.
News Corp’s property portfolio includes premier properties across Australia and overseas.
The deal comes on the heels of a $1.7 billion takeover bid by the media company’s parent, News Corp. in March, which was announced shortly after News Corp’s stock plunged by about 8% in a single trading session.
News Corporation said today that it will continue to be a wholly owned subsidiary of News Corp Australia until its acquisition of Cricos property portfolio is completed.
The news comes after the company reported a net loss of $4.5 billion in the fourth quarter of 2016, which the company said was a decline of $1 billion in net profit due to higher interest rates and a lower volume of new customers.
The CricOs acquisition will see News Corp move to a new strategic structure, including a greater focus on the UK and European markets, which News Corp previously said it wanted to focus on.
The News Corp acquisition is expected to be completed by the end of 2017.
The company said that News Corp would continue to develop its digital platform and that it would continue providing its clients with news and information across its businesses.
The CEO of News, Mark Thompson, said today’s deal with Cricolos would help News Corp in “ensuring that its digital properties continue to deliver the value that they have for its customers and the wider community”.
Cricoloses parent, Criczos media group, has been in discussions with News Corp for months, but the deal is the culmination of months of talks between News Corp and Cricós parent.
News reported in November that NewsCorp had reached a deal to acquire Cricozos, with the Cricols owning 49.3% of the company.
The acquisition was a joint venture between News and Crazos.
News Corp said that Cricoloos portfolio would remain the largest portfolio owned by Cricoso’s shareholders.
News said that it is “confident that we have achieved the right combination of assets that will enable us to continue our growth trajectory, and to be more focused on delivering a truly global news and content platform that meets the needs of our audiences around the world”.
The deal is subject to regulatory approval and is expected close by the close of business on Wednesday.