- DMGT proposed Monday to sell its stake in Euromoney and return about £900m to the shareholders as part of a move to shore up its balance sheet.

Following a review of the group's capital and cash resources, the board had concluded that the group's capital and cash resources 'were in excess of its current requirements and that a significant distribution to shareholders, equivalent to about £896m was appropriate,' the company said.

'The Proposed Distributions that we have announced today are fully aligned with our strategic priorities of increasing the focus of our portfolio and maintaining financial flexibility, whilst at the same time improving the efficiency of our balance sheet,' said Paul Zwillenberg, CEO of DMGT. 

'In total, the distributions will result in almost £900m of assets being returned to shareholders, who will benefit from direct ownership of Euromoney while retaining exposure to a simplified DMGT Group.'

Under the terms of the Euromoney distribution, fully participating shareholders would benefit from a 14.5% discount to the 30 day volume weighted average market value of the Euromoney shares relative to the 30-day volume weighted average market value of the A Shares.

For each A share held, shareholders would receive 0.19933 of a Euromoney Share and 68.13p in cash, and there would be a reduction of 0.46409 of an A Share5; Rothermere affiliated shareholders would receive 25.53p in cash, and there would be a reduction of 0.03946 of an A Share5, the company said.

Until December 2016, DMGT held two very significant stakes in publicly listed companies: a 67% stake in Euromoney and 31% stake in ZPG. DMGT disposed its stake in ZPG for £642m in cash in 2018, and the board had 'now determined that DMGT should dispose of its remaining stake in Euromoney.'

Following the proposed distributions, Euromoney would become an entirely independent company with 100% of its shares trading freely in the market. 

At 10:22am: [LON:DMGT] Daily Mail and General Trust PLC share price was +31.75p at 678.75p

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