INDEPENDENT News & Media (INM) may consider a sale of its investment in the world’s best-read newspaper as it tries to pay down its debts.

The Irish publisher, which owns The Independent in Britain, is understood to have held discussions with the founding family behind Dainik Jagran about selling back its stake in the Hindi-language Indian newspaper, which has a readership of 56.6m.

INM is selling assets to relieve its £1.3 billion debt burden.

Its shares – listed in Dublin – have lost 90% of their value in the past year. It is selling its stakes in the online bingo firm Cashcade and in Verivox, a German price-comparison website. INM has conceded that a €200m bond due for repayment on May 18 will need rolling over after it scrapped a new bond issue last month.

Bondholders are thought to have greater confidence in the business since it was announced that Sir Anthony O’Reilly, founder of the group, would step aside to be replaced by his son, Gavin.

INM acquired the 21% stake in Jagran Prakashan, Dainik Jagran’s parent, for €25.5m (£22.5m) in 2004. In contrast to many publishing groups, the Indian business is still growing strongly, and increased its earnings 37% in the year to March 2008. The title was founded in 1942 by Puranchandra Gupta, a freedom fighter intent on securing India’s independence from the British empire.

INM will reveal how hard it has been hit by the advertising downturn when it announces full-year profits on Friday.

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