Daily Mail shares jump following Euromoney shareholder giveaway
Shares in newspaper group Daily Mail and General Trust (DMGT) jumped more than five per cent this morning after the company said it would return shares to shareholders.
The company last night said it would return its 49 per cent stake in business media group Euromoney, along with £200m in cash, to certain DMGT shareholders.
Read more: Lord Rothermere tightens grip on Mail group with Euromoney share give away
The move will boost Lord Rothermere’s control over the company, lifting his family’s stake in the non-voting shares from 24 per cent to 36 per cent.
But the announcement also went down well with investors, as shares rose in early trading.
DGMT said the redistribution of shares will increase its portfolio focus and allow its management to spend more time on its core business.
The company said it will also resolve the discount it believes is applied to DMGT’s market price as investors have an indirect holding in Euromoney via DMGT.
Read more: Daily Mail reviews options for financial magazine publisher Euromoney
The distribution means the performance of DGMT’s shares will now be unaffected by Euromoney’s trading, and allows shareholders to decide whether they want to keep their shares in Euromoney when it becomes independent of DGMT.
Separately, DGMT also said it will make £117m in cash available to its pension scheme.