Daily Mail & General Trust PLC (LON:DMGT) plans to return all its remaining shares in financial magazine publisher Euromoney Institutional Investor PLC (LON:ERM) and £200mln in cash to eligible holders of its listed ‘A’ non-voting shares, a move which - together with a share reduction - will increase the Rothmere family’s holding in the newspaper publishing group.
DMGT, which was a founding investor in Euromoney and is its largest shareholder, confirmed last week that it was considering its options with regards to its around 49% stake in the firm
READ: Daily Mail & General Trust says reviewing options in respect of its remaining holding in Euromoney
In a statement on Monday, DMGT said each of its A shareholders will receive 0.19933 Euromoney share, plus 68.13p in cash. The company said the number of its A shares will also be reduced as part of the capital distributions, on the basis of a reduction of 0.46409 for each existing A share.
The Rothermere family shareholders will not get any Euromoney shares but will receive £17mln in aggregate in cash, which is 65% less than the amount they would have received had they participated fully in the cash distribution. Because of their only partial participation, the Rothermere family holdings in DMGT will increase to 36% from 24%.
DMGT chief executive, Paul Zwillenberg commented: "In total, the distributions will result in almost £900mln of assets being returned to shareholders, who will benefit from direct ownership of Euromoney while retaining exposure to a simplified DMGT Group.”
In a separate statement, Euromoney chief executive officer, Andrew Rashbass said: "The proposed distribution would result in a more diversified shareholder base for Euromoney and we would expect it to result in increased liquidity in our shares.
“This should benefit both existing shareholders and those joining the register as a result of the proposed distribution. It will also underline Euromoney's status as a fully independent company.”
In mid-morning trading, Euromoney shares were 4.5% lower at 1,242p, while DMGT A shares were 5% higher at 679p.