10th Feb 2022 09:13
(Alliance News) - Informa PLC on Thursday kicked off its share buyback programme following the GBP1.9 billion divestment of Pharma Intelligence and said it saw a strong performance through 2021.
Informa shares were up 5.5% to 598.80 pence each in London, making it the blue-chip best performer.
The business publisher and events organiser said it would use the funds received from the sale to start a share buyback programme, with the initial tranche allocated a maximum of GBP100 million, as part of a wider plan to return around GBP1 billion back to shareholders.
London-based Informa expects to report 2021 revenue in line with its guidance of around GBP1.8 billion, up around 8.4% from the previous year's GBP1.66 billion, and adjusted operating profit of GBP375 million, which would be 40% higher from 2020's GBP268 million.
Despite the strong rebound, this is still some way off 2019 levels of GBP2.89 million revenue and GBP933 million adjusted operating profit.
"Trading in 2022 has started confidently in our two leadership businesses, Academic Markets and B2B Markets, alongside continuing growth in our Informa Intelligence portfolio. Unlike the previous two years, we have a full physical events calendar scheduled through the first quarter in North America and the Middle East, with trading in China scheduled to start in mid-March after the annual holiday period," the company said.
The Pharma Intelligence divestment, for which plans were initially announced in December, will be sold to Warburg Pincus, a New York-based private equity firm with USD73 billion in assets under management.
Pharma Intelligence is a provider of drug, device, company, clinical trial and market intelligence in the pharmaceutical and medtech markets. It is the largest business within FTSE 100-listed Informa's Intelligence division.
With 85% of equity value, equating to GBP1.7 billion in cash, by the deal, Informa will retain a 15% shareholding in Pharma Intelligence going forward.
"Retaining this shareholding, as well as board representation, will contribute to the efficiency of the separation process, enabling the business to focus on its forward growth opportunities," Informa said.
Following completion and separation of Pharma intelligence, Informa said it plans to continue its divestment plans, focusing on its Financial Intelligence business comprising EPFR Global, IGM and Zephyr but excluding the retail banking joint venture, Curinos.
Informa Intelligence divides its brands into the categories Pharma, Financial Intelligence, and Maritime Intelligence. The latter includes 300-year-old Lloyd's List.
The divestments fall under a new strategy which will see Informa focus on two markets going forward: the Academic market and B2B markets.
Following the Pharma Intelligence divestment, Informa has kicked off a share buyback programme which will run through to the company's annual general meeting in June.
In early December, Informa said as part of its planned sales, shareholders can expect around GBP1 billion returned to them via a special dividend and the share buyback programme.
Full year results are due on March 15.
By Greg Roxburgh; [email protected]
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