INM sells off stake in Cashcade

Independent News and Media has sold its 18 per cent holding in Cashcade, owner of bingo websites including Foxy Bingo, Think Bingo, to gambling business Partygaming for €15.3m (£13.2m).

The sale follows the sell off of part of INM’s Indian newspaper holding earlier this month.

INM reduced its stake in Jagran Prakashan raising a reported £19m to help fund its debt repayments.

The publisher of the Independent and Independent on Sunday said today the Cashcade deal may also bring it additional incremental proceeds in 2010 and 2011, subject to certain earnings targets being met.

Cashcade reported profits of £7.5m in 2008, the deal announced today by INM forms part of a total buyout of the gambling firm by PartyGaming in a deal worth nearly £100m.

INM said: ‘This sale continues the company’s stated deleveraging strategy, with proceeds being retained pending resolution of the ongoing restructuring discussions and in accordance with the terms of the prevailing standstill agreement.”

The troubled publisher was facing a deadline of get its finances in order by tomorrow, after negotiating a standstill with its banks over a due bond repayment of more than £170m. However, reports earlier this week suggested the bond would be extended, for a third time, beyond this deadline.

South African newspapers reported, at the start of this week, buyers were circling to snap up INM’s papers in that country.

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