20th Jun 2022 10:15
(Alliance News) - Euromoney Institutional Investor PLC became the latest company to become the object of private equity interest, though a takeover would deal a blow to investors looking for long-term opportunities in the UK stock market.
Euromoney on Monday confirmed a weekend report by the Daily Mail newspaper that two private equity firms were considering a bid for the FTSE 250-listed business information publisher and events organiser.
Euromoney said it received an approach from a consortium comprised of Luxembourg-based private equity firm Astorg Asset Management Sarl and London-based private equity firm Epiris LLP regarding a possible cash offer for Euromoney of 1,461.00 pence per Euromoney share, valuing the London-based financial information publisher and events organiser at GBP1.6 billion.
The stock was up 25% at 1,367.00 pence on Monday, the best performer in the FTSE 250.
The latest offer represents a 34% premium to Friday's closing share price of 1,094.00p. Euromoney said the proposal follows earlier approaches from the consortium to the board regarding a possible all cash offer for Euromoney at 1,175p, 1,250p, 1,310p and 1,350p per Euromoney share.
"The board is engaged in discussions with the consortium regarding the proposal. There can be no certainty that an offer will be made nor as to the terms on which any offer might be made," Euromoney said.
The Daily Mail is owned by Euromoney's former largest shareholder, Daily Mail & General Trust.
AJ Bell's Russ Mould commented that Euromoney has a lot of attractive features to private equity. These include services which are in demand, a strong balance sheet and the opportunity to make improvements to profit margins.
"The company has been sharpening its focus thanks to a mixture of self-help measures and strategic deals. It has been reaping the benefits of bolt-on acquisitions which have helped to strengthen its data intelligence capabilities, and its events business has also been recovering from Covid disruption," Mould said.
"A takeover would be a short-term win for shareholders given how the latest proposal is at a significant premium to last Friday's closing price but it would also see yet another quality business leave the UK stock market, which is negative for investors looking at the London Stock Exchange for long-term opportunities," Mould added.
By Arvind Bhunjun; [email protected]
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