Daily Mail & General - Reduction of stake in Euromoney
Reduction of stake in
DMGT announces its intention to reduce its holding in Euromoney to c.49%. This will be achieved by a sale of approximately 32 million ordinary shares in Euromoney (the "Sale"). The Sale will increase the focus within DMGT's portfolio and enhance its financial flexibility, consistent with the strategic priorities presented on 1 December.
The Sale will comprise two parts: (i) a secondary placing of Euromoney shares (the "Placing") and (ii) a buy-back by Euromoney of its own shares from DMGT and the subsequent cancellation of the bought back shares (the "Buy-back").
The Buy-back, which has been agreed between DMGT and Euromoney, will be by means of an off-market share buy-back and is subject to majority approval by Euromoney's independent shareholders (which excludes DMGT). The shares to be sold in the Placing (the "Placing Shares") and, if approved, the Buy-back (the "Bought Back Shares") represent approximately c.10% and c.15% of Euromoney's current issued share capital respectively. As the Bought Back Shares will be cancelled, the combined effect of the Sale will be to reduce DMGT's holding from c.67% of Euromoney's issued share capital to c.49%. As a result, Euromoney will cease to be a subsidiary and will be accounted for as an associate. Euromoney is and will remain strategically independent of DMGT, but will gain further functional and financial independence as a result of the Sale.
Euromoney has made significant progress executing on its revised strategy since it was announced in
Euromoney has been and continues to be a valuable investment for DMGT. The business has market-leading products, a first-class management team and excellent prospects. Following completion of the Sale, DMGT will continue to be Euromoney's largest shareholder and is actively committed to supporting Euromoney in implementing its strategy through its representatives on the Board.
The Placing Shares are being offered by way of an accelerated bookbuild, which will be launched immediately following this announcement.
The final number of Placing Shares to be placed and the placing price will be agreed by the Bookrunners and DMGT at the close of the bookbuild process. The results of the Placing will be announced as soon as practicable thereafter. This announcement will also include illustrative financial information for DMGT for FY 2016 to show the results as they would have been had DMGT's holding in Euromoney been c.49% throughout the year.
The timing of the close of the bookbuild process, pricing and allocation are at the absolute discretion of the Bookrunners. Euromoney's ordinary shares held by DMGT which are not sold in the Placing will be subject to a 180-day lock-up, which will be subject to customary exceptions and may otherwise only be waived with the consent of the Bookrunners.
The Bought Back Shares will be sold to Euromoney at the placing price, if the Buy-back is approved by Euromoney's independent shareholders (which excludes DMGT).
For further information
For analyst and institutional enquiries:
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+44 (0)20 7260 1000
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For media enquiries:
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Market Abuse Regulations
As with previous announcements, the information communicated in this announcement includes inside information. DMGT has included this statement in this announcement in order to comply with the Market Abuse Regulation, which came into effect on
DMGT manages a balanced multinational portfolio of entrepreneurial companies, with total revenues of almost
This information is provided by RNS
Quick facts: Daily Mail and General Trust
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