Lord Rothermere, the biggest shareholder of the group behind the Daily Mail, has finally succeeded in making the publisher private. The Daily Mail & General Trust will be delisted from the London Stock Exchange as of January 10, 2022, with a bid of 270p a share, or £871 million.
“Today marks a huge milestone for DMGT, as we look towards an exciting and rewarding future under private ownership once again,” said Lord Rothermere, who owned a 36 percent stake in DMGT before the deal, on Tuesday.
“We have always been a business that backs strong leadership and talent, and today is the ultimate expression of that faith.”
The offer also comes with a decrease in the acceptance rate for the deal from 90 percent of shareholders to 50 percent. This was made after investors declined earlier bids of 251p a share and later 255p.
It was announced that shareholders had until December 16 to accept the final offer. DGMT is currently applying to the Financial Conduct Authority (FCA) to cancel the listing and stop trading in all DMGT shares.
DGMT has been listed on the stock market since 1932. The group that owns Daily Mail, Mail on Sunday, and Metro newspapers recently acquired The I newspaper and New Scientist. The company also recently revealed that they have been struggling with the newsprint cost.
“There have been recent substantial increases in distribution and energy costs, as well as increases in the cost of newsprint at levels not seen since 1996, and these have started to impact the profitability of the newspaper businesses,” it said in a statement.
“DMGT is currently exploring a number of options to mitigate the impact of these cost increases, including a review of employee numbers.”
Lord Rothermere’s bid came with several conditions, including the sale of DGMT’s insurance business RMS to Moody’s for £1.4 billion that was completed in September and the listing of UK-based online car dealer Cazoo, in which DMGT owns a 20 percent stake, that eventually debuted in Wall Street in August.