1/30/2018, 9:55 AM (Source: TeleTrader)
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UBM recommends takeover by Informa

The largest business-to-business events organizer is being created, UBM Plc said on Tuesday in a statement in which it recommended to shareholders to accept a £3.9 acquisition offer from Informa Plc. The transaction, which the companies expect to be executed by the end of June, consists of 1.083 Informa shares and 163 pence in cash per outstanding share in the target entity.

The statement highlights the conference operators' large events portfolios and "highly complementary" operations as well as "scale benefits" in technologies, processes and customer-facing innovations. The premium to the closing price on January 15, before the possible offer announcement, is 29.9%. The stock compensation translates to 34.5% of the London-based ebiz firm.

Synergies were estimated to be at least £60 million in annual recurring pre-tax cost savings, with £50 million to be delivered in the 2019 financial year, against one-off costs of £80 million. The sector is moving to operating scale and industry specialization, said Stephen Carter, chief executive of Informa.

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