Business Weekly - Cambridge, UK

Emap has held on to its B2B division

The Peterborough-based group has sold the two divisions to one of Europe's largest publishing groups, Heinrich Bauer Verlag KG, leaving Emap to focus on its remaining business-to-business division where all offer talks have been terminated.

The consideration, offered on a cash free, debt free basis, breaks down into £422m for radio and £718m for the consumer media business, and represents a multiple of 2.2 times pro forma revenue for 2007 and 11.2 times pro forma operating profit for the year.

Following the deal, which is dependent on shareholder approval, Emap said that it plans to return around £1bn to shareholders, equivalent to about 460p per share, the method and timing of which will be announced in due course.

The deal will leave Emap with its remaining B2B division, which its board decided would provide the best value for shareholders through its continued operation, and as such has terminated all discussions with parties interested in the business.

A wide-ranging shake-up is to follow the sale, with CEO of the B2B communications division, Derek Carter, becoming chief executive of the slimline group, and finance director Ian Griffiths becoming deputy chief executive of Emap while remaining in his FD role.

Executive chairman, Alun Cathcart, who has stood in at the head of the firm since the departure of CEO Tom Maloney in May, will revert to non-executive chairman and will work with the new management team until a new non-executive chairman can be found, Emap said.

"The price achieved for Emap Consumer Media and Emap Radio fully reflects the value of the two divisions," said Cathcart.

"Emap will now be a focused B2B company with strong market positions, strong cash flow and a proven management team and track record in delivering value and growth."

Shares in the company have plummeted almost ten per cent, dropping 80p to 745.5p.

TrackBack URI for this entry

Comments (0)

Subscribe to this comment's feed

Show/Hide comments

Show/Hide comment form