DMGT is to sell Aberdeen Journals, which had a turnover last year of 38.2m, to Scottish publisher DC Thomson in a 105m cash deal.
It will also merge the regional newspaper arm with DMGT's national arm, Associated Newspapers. The combined operation will be headed by Associated managing director Kevin Beatty, while Michael Pelosi will continue as Northcliffe managing director.
Northcliffe will be organised into six regional divisions and DMGT said printing, online operations and back office support will "work more closely together".
The restructure is expected to cut annual costs by "at least" 45m.
DMGT expects to reduce its capital expenditure to 20m in 2007/8 and has announced a share buy-back scheme worth 50m in the first year.
The newspaper group confirmed it would not go ahead with the proposed print plant at Elsham Wold. It also revealed that there had been three offers for Northcliffe, but that none "reflected the long-term value".
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