Metro International Signs Joint Venture Agreement In Mexico
Metro International S.A. (“Metro”), the international newspaper group, today announced that it has entered into a joint venture in Mexico, and that a new edition of Metro will be launched in the world’s second largest city - Mexico City - during the spring. Publicaciones Metropolitanas, S.A. de C.V. has been established as a franchisee in Mexico in order to launch the new paper. Metro owns 35% of the company, with 35% owned by MXSHARES, S.A. de C.V., and 30% by Immobilaria Torraco, S.A. de C.V. Metro will account for its interest in the company as an equity participation and will also receive franchise fees, which reflects the expertise that Metro will bring to the joint venture and the granting of a licence to the new company to publish Mexican editions of the newspaper. Metro has an option to increase its shareholding in the Company in future.
A new edition of Metro will be launched in Mexico City during the Spring. ZenithOptimedia estimates that the Mexican advertising market was worth US$ 3.7 billion in 2005 and that print advertising accounted for US$ 917 million.
MXSHARES is owned by a group of investors related to GBM, Grupo Bursatil Mexicano, S.A. de C.V., which is one of the largest securities brokerage firms in Mexico. Immobiliaria Torraco is a private company managed by Antonio Torrado, member of the Torrado family which also holds franchise licenses to other world leading brands such as Burger King, Starbuck’s and Domino’s Pizza, through the publicly listed company Alsea, S.A de C.V..
Pelle Tornberg, Metro President and CEO commented: “As one of the world’s largest cities Mexico is an ideal location for Metro. We have been looking at the Mexican market for a number of years and seeking the optimal structure for the development of Metro into what is one of America’s largest and fastest growing city advertising markets. We now have strong and well-connected local partners, which should accelerate the development of the business. We have enjoyed a successful track record in other South American markets and this expansion will extend our regional footprint even further.”
ABOUT METRO INTERNATIONAL
Metro is the largest and fastest growing international newspaper in the world. 61 Metro editions are published in 88 major cities in 19 countries in 18 languages across Europe, North & South America and Asia. Metro has a unique global reach - attracting a young, active, well-educated Metropolitan audience of 18.5 million daily readers and more than 37 million weekly readers. Metro has an equal number of male and female readers and 70% are under the age of 45.
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