Rothermere family may take Daily Mail private
The Rothermere family is considering taking the Daily Mail and General Trust, the owner of the Daily Mail and MailOnline, private following a takeover approach for one of the company’s business-to-business divisions.
The company confirmed that it is in discussions in relation to the sale of its Insurance Risk division, RMS, while it is prepared to pass on to investors its 16% holding in online car dealer Cazoo after it lists through a SPAC deal in New York.
Should the sale go through DMGT shareholders will get a special dividend comprising cash estimated at 610p plus a share in Cazoo.
RCL, the the Bermuda-registered Rothermere vehicle, has indicated that if both deals happen it would be prepared to make a possible cash offer for the remainder of the group – the newspapers, an exhibitions business, a property information unit and a small venture capital operation – worth an enterprise value of £810 million.
DMGT said: “The disposal of RMS would mark a further significant milestone in the transformation of DMGT, following the disposals in recent years of Hobsons, Genscape and Zoopla, which collectively realised c.£1.2 billion of value for DMGT, as well as the distribution of DMGT’s c.50% stake in Euromoney.
“On top of the substantial cash proceeds that would arise from the sale of RMS, DMGT will have a further major asset upon completion of the business combination of Cazoo.”
With regard to the offer, DMGT’s independent directors have also said they regard the terms as fair and would be minded to recommend it.