Private equity in £1.6bn offer for Euromoney
SHARES in Euromoney Institutional Investor soared after a consortium of private equity firms launched a £1.6bn takeover swoop.
The FTSE 250 media and events group – set up in 1969 by then daily mail City Editor Sir Patrick Sergeant – said astorg asset management and Epiris have offered 1461p a share.
The announcement came after the mail on Sunday revealed private equity was considering a £1.6bn bid for the firm where Sergeant, now 98, is Life President.
Euromoney shares rose 26.1pc, or 286p, to 1380p, valuing the business at around £1.5bn.
The 1461p a share ‘possible cash offer’ followed four earlier offers from the consortium, which ranged between 1350p and 1175p.
The suitors have until July 18 to either make a formal offer or walk away under Takeover Panel rules.
Euromoney, which has 2,500 employees in the UK and Europe, North america, South america and asia, publishes the Euromoney financial magazine as well as Institutional Investor, Fast markets and metal Bulletin. It also hosts events and its Global Borrowers and Bond Investors Forum starts in London today.
Shares tumbled during the pandemic as lockdown restrictions brought the events industry to a standstill. They have since bounced back, boosted by the possible takeover, and are around double the pandemic lows.
daily mail & General Trust – owner of the mail titles – sold its 49.1pc stake in Euromoney in 2019.
The approach for Euromoney comes as private equity firms scour the UK stock market for bargains in the wake of the pandemic. a number of high profile British companies have fallen into private equity hands in recent years including morrisons, asda and G4S.
Russ mould, investment director at AJ Bell, said: ‘a takeover would be a shortterm win for shareholders but it would also see yet another quality business leave the UK stock market.’