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Media

Daily Mail and General Trust offer garners little support so far

Two institutional shareholders have publicly spoken out against the proposal

Rothermere Continuation Limited (RCL) has received only a handful of votes so far for its plan to take the Daily Mail newspaper group private.

Only 0.17% of holders of the non-voting 'A ' shares have so far accepted the offer, which closes on 16 December.

RCL, the vehicle of the Rothermere family, itself owns 27.6% of the 'A' shares and all the ordinary voting shares, which together amount to 34% of the total.

Two institutional shareholders have publicly spoken out against the proposal, saying the offer of 255p in cash, a special dividend of 568p, and 0.5749 Cazoo shares for each share they own, which in total is worth £850mln, is unreasonably low.

Majedie, which has a 4.6% stake in DMGT, said: “Our appraised valuation estimate of only the largest businesses within DMGT materially exceeds double the current offer price of 255p. We strongly urge shareholders not to accept the offer.”

On Friday, J O Hambro, which owns 3.3%, said the offer is neither "is neither fair nor supportable" citing the value of its booming online businesses

RCL has set an acceptance benchmark of 90% of the shares but can reduce it to 50% if necessary to get the deal across the line.

If the deal fails to go unconditional the special dividend will be dropped, RCL said in its statement today.

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