Proposed sale of Data Services businesses

UBM PLC - Proposed sale of Data Services businesses

PR Newswire

London, February 4

UBM plc announces proposed sale of Data Services businesses

Concluding the strategic review initiated in July 2012, UBM plc today announcesthat it has received a binding offer from Electra Partners LLP to purchase aportfolio of UBM's Data Services businesses ("Delta") for consideration of £160m including a £40m vendor loan note. The offer is subject to consultationwith the relevant works council in France and certain regulatory and otherapprovals(1).

Delta represents the bulk of UBM's Data Services segment and includes itsHealth, Technology and IP, Trade & Transport, and Paper business units. In2011, these businesses generated revenue of £190.0m and adjusted operatingprofit of £27.7m. In 2012, these businesses generated revenue of £179.3m andadjusted operating profit of £27.4m(2,3). As at 30 June 2012 the businesses hadgross assets of £295.5m.

Upon completion, the cash consideration of approximately £100m (net of workingcapital adjustments) will be used to repay bank debt. The vendor loan note,which will be held at amortised cost, will carry a 6% PIK coupon and has afinal maturity of six years. Credit Suisse acted as sole financial adviser toUBM on the transaction.

For UBM as a whole, 2012 fully diluted adjusted EPS is expected to beapproximately 58 pence. Events earnings have been in line with our expectationsdespite slightly lower revenue growth than anticipated. PR Newswire hasperformed in line with our guidance. Earnings in Data Services have fallenshort of guidance but are expected to be offset by lower than anticipatedcorporate costs and tax charge.

David Levin, CEO, UBM plc said:

"This transaction is a significant strategic step forward for UBM: by divestingDelta we simplify UBM's business, improve the quality of our earnings, enhanceour underlying growth rates and remove the challenges inherent in the continuedtransition to digital data delivery. We can now look forward to focusing onfurther developing UBM as a fast-growing and increasingly profitableevents-led, marketing services and communications business."

UBM plc will issue its Full Year results on 1st March 2013 and host an InvestorPresentation, at the London Stock Exchange, at 11am that morning.

Notes

1. The Delta businesses will be classified as discontinued in UBM's 2012

consolidated results. Given the transaction structure and the likelihood of

completion, their results will not be consolidated in UBM's financial

statements from 1 January 2013.

2. For 2012, the revenues of the Delta businesses being sold are expected to

UBM has retained a number of data services products, including Barbour ABI andsome smaller technology products, which are closely related to retainedbusinesses and were not subject to our strategic review. These retainedbusinesses generated approximately £24m of revenue in 2012.

3. All 2012 financial figures remain subject to audit.

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