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Ascential, a B2B media and events company in Communication sector, disclosed on Wednesday that a potential sale of its stake in Hudson MX is unlikely to result in a special dividend for its shareholders. This announcement follows the company's recent agreement for a £1.2 billion acquisition by Informa.
Sale of Hudson MX and Dividend Expectations
Ascential holds a 36.5% stake in Hudson (NASDAQ:HSON) , a media technology group based in Atlanta. The company has been exploring the sale of this stake since October 2023, with discussions ongoing with several interested parties.
However, Ascential has indicated that it is improbable that the proceeds from any such sale will meet the criteria needed to facilitate a special dividend under the terms of the Informa acquisition scheme. The company clarified that the sale of Hudson MX is unlikely to be structured in a way that aligns with the requirements for distributing net sale proceeds as a permitted dividend.
Implications of Informa Acquisition
Ascential’s agreement to be acquired by Informa (OTC:IFPJF), announced in July, involves a comprehensive takeover scheme. According to the terms of this agreement, any special dividend would need to be derived from a specific type of sale or divestment. As a result, the Ascential board does not anticipate declaring a permitted dividend based on the current sale discussions.
