Freshfields Bruckhaus Deringer has advised Guardian Media Group plc, publisher of theguardian.com and the Guardian and Observer newspapers, on its agreement to sell its 50.1% stake in Trader Media Group to its joint venture partner Apax Partners.

The Trader Media disposal, subject to regulatory approval and final completion, forms part of a five-year digital-first strategy that has delivered increasing advertising revenues, improved circulation figures and enhanced investment returns as GMG focuses on its core assets.

The Scott Trust Limited, the sole shareholder of GMG, has given its full support to the proposed transaction. The Trust has authorised the GMG Board to reinvest the proceeds in order to enable it to continue to safeguard the editorial and financial independence of the Guardian.

The Freshfields team advising on the transaction was led by corporate partner Simon Marchant supported by corporate associate Rikin Morjaria.

The proposed sale of GMG’s 50.1% stake follows the group’s disposal in 2007 (which Freshfields also advised on) of a 49.9% stake in Trader Media Group, best-known for its Auto Trader branded website, to Apax.