Bauer takes Emap for £1.4bn
Emap, publisher of Zoo and New Woman, has agreed to sell its consumer magazine and radio assets to German publisher H Bauer for £1.14 billion, as exclusively tipped by mad.co.uk yesterday.
Emap said once the deal is completed it will return around £1 billion to shareholders. The magazine publisher and radio owner announced a strategic review of the business earlier this year following a string of profit warnings. The break-up of the group hoped to raise up to £2.5 billion.
However, Emap said that it will not be selling its business-to-business magazines and revealed that it has "terminated" discussions with potential buyers of the magazines. The company said that it will continue as a B2B only publisher.
The disposals will require shareholder approval at a meeting next month.
The Board has approved changes to the management and governance structure of Emap, effective upon completion of the disposals.
Derek Carter, currently CEO of Emap Communications, will assume the role of CEO of Emap. Ian Griffiths has accepted the role of deputy chief executive of Emap, and remains as group finance director.
Alun Cathcart will revert to non-executive chairman after the completion of the disposals and will work with the new management team of Emap until a new non-executive chairman has been appointed.
Cathcart said: “We are pleased to have achieved a successful outcome in the review of Emap’s Group structure. The price achieved for Emap Consumer Media and Emap Radio fully reflects the value of the two divisions. 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.”
H Bauer, the publisher of Take A Break and TV Choice, emerged as shock the preferred bidder late yesterday afternoon, as revealed by mad.co.uk.
Other bidders for the Emap business, which publishers First and Grazia and owner of Magic and Kiss radio, included National Magazines Company, private equity firm Texas Pacific Group, and investors Apollo, DLJ Merchant banking and US group Quadrangle.
Some of the radio industry’s biggest heavyweights had shown an interest in the Kiss and Magic assets, including Global Radio, GCap and a consortium led by former Chrysalis radio CEO Phil Riley.
Ashley Tabor, chief executive of Global Radio, previous favourites for the radio business, commented: “Emap’s strategic decision to proceed with a single bid for radio and consumer mags together is understandable if disappointing for radio specific bidders in the process. Global Radio is committed to the future and long-term consolidation of the UK radio industry.”
| Bookmark with: |
