Russia prohibits Sanoma to sell 50% in publisher of Cosmo, Esquire

MOSCOW, Aug 6 (PRIME) -- A Russian government foreign investment commission has banned Helsinki-headquartered media giant Sanoma’s sale of its 50% interest in Fashion Press, the local publisher of popular magazines such as Cosmopolitan and Esquire, to Hearst Communications, Sanoma said Thursday in a statement.

The transaction was part of a broad strategy review announced by Sanoma in October 2013 to redesign its consumer media operations. A strategic review of Sanoma’s 50% stake in Fashion Press will continue.

“Throughout the strategic review process, we have had numerous expressions of interest from a variety of potential buyers. While we are disappointed not to be able to close the deal in its current agreed form, we will remain focused on considering all strategic options and hope to find a suitable solution for Fashion Press that allows us to focus on our core domestic markets,” Sanoma’s President and CEO Harri-Pekka Kaukonen said.

The sale of Russian daily financial newspaper Vedomosti to Ivania Ltd. and the Russian magazines of United Press to Moscow Times LLC were announced in April. These transactions have been closed.

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