Following the announcement of deals to dispose of Emap Consumer Media and Emap Radio to German media company Bauer for £1.14bn, Emap said it will remain focused as a b2b business. Emap said the best value for shareholders would be achieved by operating the b2b unit as a standalone basis and that it had “terminated all discussions with parties interested in Emap Communications”.
Panmure analyst Alex de Groote said: “On a two-year view, Emap’s b2b business has clear value for them and will be part of longer term consolidation (in the b2b market). Management is taking a long-erm view.”
Early this week, private equity outfit Apax was known to be in the running, with the aim of combining it with Apax’s own publishing operation, Incisive. Apax was up against two other private equity partnerships: a Candover and Cinven partnership, plus, a Providence and Permira joint bid.
A source close to one of the private equity bidders said: “We couldn’t agree on terms,so as far as we are concerned they are keeping it.”
Analyst de Groote said the decision was disappointing to the City. “This was the least likely and most bizarre outcome. Everyone thought Emap would have taken a haircut on the consumer price,but we were looking for around £1.25bn for the b2b unit,and the offers must have been 20% below that or more.”
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