Rothermere Prepares £ 810 Million Offer to Privatize Daily Mail Owner

Rothermere Prepares £ 810 Million Offer to Privatize Daily Mail Owner

Lord Rothermere is considering privatizing the Daily Mail in a deal that could value the news group at £ 810million.

The Rothermere family have come up with a potential offer to buy out around 70% of the Daily Mail & General Trust (DMGT) group that they do not yet own. The move would give Rothermere, who is also group chairman, full control of DMGT and remove the company from the stock exchange.

In a stock market announcement on Monday, the group said Bermuda-registered holding company Rothermere Continuation Ltd (RCL) was considering an offer of 251p per share, valuing the group at around £ 810million.

RCL already owns a 30% stake in the group – which also owns Metro and i newspaper titles – and owns all of the voting shares in DMGT’s two-tier share structure. This means that the deal is unlikely to face opposition if it is put to a shareholder vote.

However, the Daily Mail editor said a potential bid hinged on a number of factors, including a planned sale of DMGT’s insurance risk business and the sale of its stake in the auto retailer in Cazoo line, which was valued at $ 7 billion (£ 5 billion) after it was bought by a special purpose acquisition company (Spac) in March. He also seeks to ensure that the group’s pension plans will not be affected by the buyout.

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The Daily Mail publisher has reorganized the business through targeted divestitures and acquisitions in recent years, having bought New Scientist magazine for £ 70million in March, as well as newspaper i for 49.6 million pounds over two years. since.

The cash proceeds from the transactions – 610p per share – would be distributed to DMGT shareholders through a special dividend. This would give RCL at least £ 500million and likely help fund any takeover offer for the press group.

Rothermere has until August 9 to make a firm offer for the company, or to opt out.


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