Emap sells up to GMG
Emap has sold its remaining business to business assets to Eden Bidco – a consortium of the Guardian Media Group and Apax. The Magic owner, currently selling its radio division to Bauer, said earlier this month it would retain its B2B titles such as media industry weekly Broadcast.
The completion of the £1billion acquisition is conditional, amongst other things, on the completion of the Consumer Disposals, the completion of the sale of the Irish Radio Division and Emap having sufficient distributable reserves to pay the Special Dividend and there being no impediment to the payment of the dividend which is outside the control of the Board of Emap.
GMG and Apax have previously teamed up to share the price of Trader Media Group.
Commenting on the Acquisition, Alun Cathcart, executive chairman of Emap, said: 'We have already achieved highly attractive valuations for our magazine and radio businesses and are delighted to announce today a further compelling opportunity for shareholders to crystallise the value of Emap's B2B business at a 57.5 per cent. premium to its current underlying market valuation. This reflects the exceptional quality of these assets.'
Irina Hemmers of Apax said: 'We believe that Emap is a high quality asset which is uniquely positioned in attractive markets. We are delighted that the Emap directors have decided unanimously to recommend our offer which we believe delivers significant value
for shareholders. Together with our partners Guardian Media Group we plan to support Emap's development and extend its market leading franchise internationally.'
Carolyn McCall, Chief Executive of GMG, said: 'We are delighted to have secured the board's recommendation for our joint offer with Apax Partners. Emap Communications is a strong business with a range of highly successful brands. The acquisition meets our requirements in terms of diversifying GMG's media interests, in line with our commitment to guarantee the
long-term financial security of the Guardian. We look forward to working in partnership with Apax as we develop the business.'