Australian-owned New Zealand media company Stuff Limited, who operates the country's largest news website, was sold to its chief executive Sinead Boucher for one New Zealand dollar, said the company on Monday.
With the management buyout being expected to complete by May 31, Stuff, which was owned by Australian media group Nine Entertainment, will regain a New Zealand ownership, said the company.
Direct proceeds from the sale will be one NZ dollar. Nine, however, will retain ownership of Stuff's Petone printing plant site in Wellington and lease it back to Stuff. It will also receive an immediate and subsequent percentage of the proceeds from the sale of Stuff Fibre, completed on May 20.
"Nine will receive 25 percent of those proceeds before completion of the Stuff sale, plus up to a further 75 percent over the subsequent 36 months, depending on the Stuff business' ability to raise funding," said Nine at a statement to Australia stock market ASX.
"Today is an important moment for Stuff as a business," said Boucher in a statement.
Stuff Limited operates the country's largest news website, Stuff, and also owns nine daily newspapers, including New Zealand's second and third-highest circulation daily newspapers, The Dominion Post and The Press, and the highest circulation weekly, Sunday Star-Times. (1 New Zealand dollar equals 0.61 U.S. dollar)
