Euromoney shares closed 25% up on Monday: how come?

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on Jun 20, 2022
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  • Euromoney says a consortium is interested in buying it for £14.61 a share.
  • The possible cash offer values the financial info company at £1.60 billion.
  • Shares of Euromoney Institutional Investor closed over 25% up on Mon.

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Shares of Euromoney Institutional Investor plc (LON: ERM) are up more than 25% on Monday after the FTSE 250 company revealed to have received a possible cash offer.

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Proposal values Euromoney at £1.60 billion

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The London-based firm said a consortium led by Astorg Asset Management and Epiris LLP is interested in buying it for £14.61 per share. The private equity group has until 18th July to make a formal offer.

The possible cash offer values Euromoney at £1.60 billion and translates to a near 35% premium on the price at which ERM closed the regular session on Friday.

The business and financial information company made the statement “without the prior agreement or approval of the Consortium”.

No certainty that an agreement will be signed

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Euromoney is behind notable brands like Ned Davis Research, BCA Research, and Metal Bulletin. Prior to the £14.61 a share offer, the London-listed company added, its board had received four other cash offers from the consortium ranging from £11.75 a share to £13.50 a share.

The Board is in talks with the private equity group regarding the latest offer. Last month, Euromoney said its profit and revenue in the fiscal first half was up significantly on a year-over-year basis. It also offered upbeat guidance for the short and medium term.   

Euromoney has a market cap of £1.51 billion at the time of writing. The stock is now up more than 45% versus the start of the year 2022.

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