Johnston Press confirms talks to buy i newspaper for £24m cash

Johnston Press confirmed it is in late-stage discussions to buy the i newspaper from the publisher of the Independent, with a likely cash price of £24m.

The regional news publisher, which last month said it would sell several of its non-core titles in order to focus on digital growth, said the acquisition of the "business and certain assets of i" would create the UK's fourth largest print publisher and help accelerate its shift to digital publishing.

Johnston Press said it expected the acquisition would be cash generative and immediately earnings enhancing, with i's growing circulation revenues and in the year to last September making an operating profit of £5.2m.

The tabloid-sized national newspaper, which the Independent launched on 26 October 2010 to tap into the commuter market, would give rise to "new opportunities", the FTSE smallcap company's management believes from a proposed digital product, new geographic markets, and from potential cross-selling of i's advertiser base and vice-versa.

Johnston said it would use its digital expertise "to fully realise the i brand across digital platforms", adding that its network would enable "cross-promotion to grow audiences at minimal cost", while the national brand would enhance its 1XL regionally-oriented digital display network.

The success of i has been such that Trinity Mirror, which also has extensive local newspaper interests, has been reported to have begun working on the launch of copycat national newspaper.