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Highlights
- After nearly 90 years, the Daily mail group is all set to get delisted from the LSE’s main market.
- DMGT’s applications to the FCA regarding the cancellation of its listing and trading will take effect from 10 January 2022.
London is soon going to see another major departure from its main market. After a successful bid placed by Daily Mail’s biggest shareholder, Lord Rothermere, the group is all set to delist from the London Stock Exchange (LSE) and go private after almost 90 years on the stock exchange since its listing in 1932.
Delisting of Daily Mail and General Trust plc (DMGT)
Earlier this month, DMGT made a final offer of £2.7 per share, or £871 million, to its investors, while decreasing the acceptance rate for the deal to 50% of the shareholders from 90%. Despite increasing the price over earlier offers of £2.51 and £2.55 per share, the investors felt that the deals were unsatisfactory. The buyout bid was first placed in July 2021.
However, on 21 December 2021, DMGT announced that by the deadline of 16 December, the final offer has been satisfied and has thus become unconditional. The DMGT’s board has decided to make applications to the FCA for removal of the DMGT A Shares from the FCA’s official list and for the cancellation of the trading of its shares on the LSE’s main market. These applications are expected to become effective from 8.00 AM on 10 January 2022.
DMGT has been planning this major move for several months now with some conditions, which include the sale of its insurance business RMS to Moody's for cash worth £1.4 billion, and the listing of its car dealership Cazoo, in which it has a 20% stake, on the NYSE.
RELATED READ: Finablr cannot delist in London: Will FCA ruling imperil its rescue deal?
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The market cap of Daily Mail and General Trust plc (LON: DMGT) stood at £567.05 million and its shares closed at GBX 269.00 on 22 December 2021. It has given a negative return of -62.31% to its shareholders in the last one year.
About DMGT
Leading UK-based media company, Daily Mail and General Trust plc, owns the Daily Mail, which is the UK’s biggest and most-read tabloid newspaper. It got listed on the London Stock Exchange in 1932. Metro newspapers are also owned by the group, and it has recently taken over the i newspaper and New Scientist magazine.
DMGT has recently unveiled that it has been facing high costs of newsprint, reaching levels which haven’t been witnessed over the last 25 years. Thus, the company has been looking for ways of cost reduction, including an evaluation of the total number of people it employs. The profitability of the company has been negatively impacted lately due to rising energy costs and inflationary pressure with a rise in the cost of newsprint. According to DMGT’s 2021 annual report, the group’s revenue had an underlying decrease of 1% as compared to 2020, while its statutory revenues went up by 2%, going up from £870 million in 2020 to £885 million.
RELATED READ: Daily Mail (DMGT) & Reach (RCH): Should you buy these 2 media stocks?
Bottomline
DMGT’s chairman Lord Rothermere, who is the biggest shareholder of the company with 36% stake, is very optimistic about the future of the company running in private hands and said that the delisting of DMGT was a big milestone for the business. The company ensured that it would maintain the commitment it has made towards its customers and provide them with these best services as it has been doing over 130 years.
