National World, which owns esteemed titles such as Yorkshire Post and The Scotsman, is poised for a lucrative investor payout following a buyout agreement that pegs the company’s worth at over £65 million.
Irish media enterprise Media Concierge, already possessing a 26% holding in National World, initially lodged a bid valued at £56.2 million in November, as reported by City AM.
This initial offer marked a hefty 40% premium on National World’s share price as of close on Thursday, 21 November. The fresh proposition, endorsed by National World’s directors, offers a generous 53.3% premium and sets the firm’s ordinary share valuation around £65.1 million, reflecting fully diluted terms and outlining an enterprise value near £52.1 million.
In line with the accord’s stipulations, shareholders in National World are to receive 23p per share in cash. Foreseen to finalize within the first three months of 2025, the agreement has assurances from Media Concierge to stave off “material” redundancies within editorial and production teams—a collective corresponding to some two-thirds of National World’s workforce.
The group promises not to shutter any local journalistic enterprises. Yet, it cautions that “material job reductions in areas of overlap” might ensue between the merging entities in efforts to realize fiscal efficiencies post-acquisition.
They conveyed that upon National World’s transition from public listing, roles linked to public company requirements may see downsizing.
“However, Media Concierge has not yet developed any firm intentions in this regard.”
National World has been a listed company on the London Stock Exchange since its debut in September 2019. The Leeds-headquartered news organisation oversees more than 100 newspapers and websites across the UK and is led by David Montgomery.
In the first half of the year, National World disclosed a revenue surge from £41.6m to £48.8m, together with an uplift in pre-tax profits from £1.7m to £2.3m. For the full year, the company’s revenue advanced to £88.4m from £84.1m, conversely, pre-tax profit saw a decline from £5.2m to £3.1m.
This breaking news has coincided with the public announcement of The Observer newspaper’s acquisition by Tortoise Media, following a successfully signed deal between The Scott Trust and Guardian Media Group (GMG). The transaction involves the purchase of The Observer by means of both a cash payment and shares, though the precise sum hasn’t been publicly revealed.
In addition to the acquisition, a 5-year commercial agreement has been forged between Tortoise Media and GMG. As per this agreement, Tortoise will cover costs for printing and distribution services as well as promotional marketing through the Guardian.
Meanwhile, The Scott Trust is poised to claim a 9% stake in Tortoise Media. Furthermore, it will be entering the fray alongside fresh and incumbent investors, injecting £5m into Tortoise Media as part of an overall £25m investment package.
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Original artice – https://business-live.co.uk/all-about/yorkshire-humber
