UPDATE 1-Mecom sells Dutch businesses for 42 million euros

* To cut debt by 27.5 mln euros, more over next 4 years

* Says venture's ownership structure impeded modernisation

* Mecom shares rise 11 percent

(Adds detail on disposals, background, shares, analyst comment)

LONDON, June 4 (Reuters) - European newspaper group Mecom (MEC.L) is selling a stake in a newspaper venture and printing facilities in the Netherlands to its Dutch partner for 42.3 million euros ($60 million) to reduce its debt pile.

Dutch publisher PCM will buy the 37 percent in loss-making AD Nieuwsmedia it does not already own, as well as the printing facilities of Mecom's subsidiary Wegener in The Hague, Mecom said on Thursday, lifting its shares 11 percent.

"We have exited a business whose ownership structure has proved to be an obstacle in its transformation to become a modern content company," said chief executive chief David Montgomery.

Mecom said it would use the proceeds to reduce debt by about 27.5 million euros, excluding 14.8 million euros in deferred payment which it would also use to pay down debt over the next four years.

The British-based publisher has completed sales of operations in Germany and Norway this year, and also launched a 141.5 million-pound ($232 million) rights issue last month, as it chips away at debt amid a slump in the advertising market.

Mecom's net debt stood at 566 million euros at the end of April, almost nine times its market value.

By 1355 GMT, Mecom shares were up 10.9 percent to 3.95 pence, against a 1.1 percent-lower European media index .SXMP.

"Undoubtedly, it's good news. It's a good price and it makes sense for Mecom to exit this business," said Paul Richards, analyst at brokerage Numis.

Separately, Mecom will buy PCM's Lokale Media, which publishes 27 weekly free door-to-door newspapers with a combined weekly circulation of 1.1 million, for 1 euro, free of debt. (Reporting by Georgina Prodhan; Editing by Dan Lalor) ($1 = 0.7058 euro = 0.6107 pound)