GMG to write off £150m on Emap

Guardian Media Group (GMG) is likely to take a loss of nearly £150m on its investment in the publish

The company is keen to buy back nearly £100m of Emap's £700m debt freeing it to seek further acquisitions. The private equity group, Apax, which wrote off its investment in Emap last year, is also expected to buy back a major portion of the £100m debt.

The buy-back process is likely to be completed in the next few weeks. GMG has noted that the impairment of its investment in Emap is a non-cash adjustment and will not impact the company's cash and investment fund. However analysts expect the move to push up GMG's pre-tax losses for the second consecutive year.

GMG invested nearly £300m in Emap, buying it together with the private equity group Apax in 2008 in order to diversify away from its newspapers business. Emap publishes business titles such as The Architects' Journal and runs events including the World Retail Congress.