Shares in Informa (LON:INF) have gained ground in London in today’s session as the company agreed the takeover of rival UBM. The blue-chip events group further updated investors on its recent trading.
As of 10:35 GMT, Informa’s share price had added 1.45 percent to 697.60p, outperforming the broader UK market, with the benchmark FTSE 100 index having fallen into the red and currently standing 0.57 percent lower at 7,628.13 points. The group’s shares have added more than six percent to their value over the last year, largely in line with gains in the Footsie.
Informa snaps up UBM
Informa announced in a statement this morning that it had agreed a deal to buy UBM through a recommended cash-and-share offer. The Offer, which values UBM at about £3.9 billion, will result in Informa shareholders owning approximately 65.5 percent of the enlarged group and UBM shareholders owning approximately 34.5 percent.
“It is clear that the B2B Market is moving to Operating Scale and Industry Specialisation. Our recommended offer for UBM promises to create a leading B2B Information Services Group with the international reach and market capabilities to take full advantage of these trends,” Informa’s chief executive Stephen A. Carter commented in the statement, adding that the deal would create at least £60 million of annual costs savings after the businesses were integrated by 2019.
Reuters noted in its coverage of the news that the deal comes almost a decade after UBM tried to buy Informa.
Informa further updated investors on its recent trading in a short statement, pointing out that the company expects to report 2017 Full Year Results in line with expectations, delivering growth in revenue, profit, cash flow and dividends.