Daily Mail owner looking at options for its Euromoney stake

Daily Mail owner looking at options for its Euromoney stake
A clock face is seen outside of the London offices of the Daily Mail newspaper in London, Britain, April 28, 2018. REUTERS/Toby Melville   -  Copyright  TOBY MELVILLE(Reuters)
By Reuters

(Reuters) – The owner of Britain’s Daily Mail newspaper said on Monday that it is considering options for its stake in Euromoney Institutional Investor Plc, but has not yet held discussions with anyone.

Daily Mail and General Trust Plc holds more than 49 percent of Euromoney, which provides business-to-business information, and is its largest shareholder and founding investor.

Daily Mail said that it has not received any proposal regarding its Euromoney holding, adding that the company was reviewing options for its holding is “consistent with its strategy of increasing portfolio focus”.

“Our view is that a more likely scenario is the stake is sold into the market to increase Euromoney’s liquidity rather than sold to a third party,” Liberum analysts said in a note.

Although Daily Mail did not further elaborate on the reasons for the potential sale, a Sunday Times report quoted a source as saying that the holding had become “non-core” and was under review.

The stake sale could fund a 750 million pound special cash return to shareholders, according to Sunday Times.

Euromoney is the company behind the Euromoney magazine and also has brands such as BCA Research, Ned Davis Research, Metal Bulletin, and American Metal Market in its portfolio.

The FTSE-250 listed Euromoney Institutional Investor was founded in 1969 by Patrick Sergeant, then City editor of the Daily Mail.

(Reporting by Sangameswaran S in Bengaluru; Editing by Shounak Dasgupta, Bernard Orr)

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