David Montgomery’s National World, owner of The Scotsman, Yorkshire Post and numerous other regional news titles and platforms in the UK and Ireland, said on Friday it “would be minded to recommend” a “final improved” takeover proposal from Media Concierge (Holdings) Limited “if a firm offer was made to the company’s shareholders on these terms.”
National World confirmed that on December 3 it received a “final improved proposal” from Media Concierge at a price of 23p per National World share in cash worth about £61.5 million.
National World shares had been trading around 15p before Media Concierge’s previous proposal of 21p per share, which valued National World’s ordinary share capital at around £56.2 million.
National World shares are currntly trading around 20p.
Media Concierge is a London-based marketing, leafleting and news publishing firm. It already owns a 25.58% stake in National World, according to National World’s website, which also says Edinburgh investment firm Aberforth Partners own 19.43%, Alasdair Locke owns 9.88%, David Montgomery owns 7.41%, Rockwood Strategic Plc owns 5.07% and Axiom Media Holdings Ltd owns 5%.
Media Concierge owns businesses that include The Leaflet Company, The Insert Company, Printforce, Media Force, Iconic Media Group, DataLab, 1XL and The Magazine Business.
“Media Concierge has provided written reassurances to the Board of National World regarding its intentions for the Company following completion of any such offer and confirmed that it has satisfied in all material respects its confirmatory due diligence requirements,” said National World.
“The Final Improved Proposal is stated to be subject to certain pre-conditions which may be waived in whole or in part by Media Concierge, including the recommendation of the National World Board and the receipt of irrevocable undertakings from the directors of National World in respect of their shareholdings in the Company and irrevocable undertakings from certain of National World’s largest shareholders, in a form acceptable to Media Concierge.
“The Board has great confidence in National World’s strategy for value creation as an independent business and is excited by the Company’s prospects.
“This notwithstanding, the Board has concluded, after consulting with the Company’s advisers and counsel, that it would be minded to recommend the Final Improved Proposal if a firm offer was made to the Company’s shareholders on these terms …
“This announcement is made with the consent of Media Concierge. There can be no certainty that any offer will be made even if the pre-conditions are satisfied or waived and National World shareholders should take no action at this stage. A further statement will be made as and when appropriate.”