The board of directors of RMH Regionalmedien AG will propose this step to the annual general meeting on May 25, according to a media release on Tuesday. RMH Regionalmedien is to be merged into NZZ Regionalmedien AG by means of an absorption merger, excluding minority shareholders.

RMH Regionalmedien had emerged from the merger of the media houses LZ Medien Holding AG and Tagblatt Medien Holding AG, which belong to the NZZ Group. 97 percent of the shares are held by NZZ.

The minority shareholders had originally been involved in one of the media houses in eastern and central Switzerland, the statement said. Among other things, the situation changed with the creation of the joint venture CH Media, which united the NZZ and AZ regional media under one roof, it said. "The original direct link to the regional media has largely dissolved as a result of this structural change."

The remaining RMH minority shareholders will receive a cash compensation of CHF 245 per share, according to the announcement. The merger of RMH into NZZ Regionalmedien will give the company greater freedom of action, the statement continues. Felix Graf, Chairman of the Board of Directors of RMH Regionalmedien AG, was quoted as saying that maintaining RMH as an independent company with minority shareholders would involve disproportionate expense. (SDA)