Newspaper publisher and media sector investor Daily Mail & General Trust (DMGT) added 2.7% to £10.68 as it confirmed a plan to realise value on two of its key assets and be taken private by its controlling shareholder, the Rothermere family.
Today's relatively modest rise should be seen in the context of a 33.7% advance in the last six months and 60% surge in the last 12 months.
WHAT ARE THE TERMS OF THE PROPOSED DEAL?
A purchase price of 251p per share or £810 million for the 70% of shares the Rothermeres do not already own may sound way under the odds but the slightly complex transaction encompasses and is dependent on the disposal of the RMS insurance risk business and the realisation of value from its 20% stake in online car retailer as it joins the US stock market through a special acquisition vehicle.
Both events are expected in the third quarter of 2021. Analysts at Barclays calculated that the total payout to shareholders, including the Rothermere offer, the proceeds from the RMS sale and the Cazoo float, would be £12.80 per share.
Under takeover rules the Rothermere family has until 9 August to make the proposed deal formal or walk away.
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