Euromoney in £1.6bn takeover talks with PE firms Astorg, Epiris

Euromoney Institutional Investor confirmed on Monday that it was in talks with a consortium comprising of private equity firms Astorg Asset Management and Epiris about a possible £1.6bn cash takeover.

Responding to media speculation over the weekend, Euromoney said they were in discussions about a possible offer at £14.61 per share. This follows earlier approaches from the consortium at £11.75, £12.50, £13.10 and £13.50 per share.

"The board is engaged in discussions with the consortium regarding the proposal," it said, adding that there can be no certainty an offer will be made nor as to the terms on which any offer might be made.

At 0945 BST, the shares were up 24.5% at 1,362p.

Russ Mould, investment director at AJ Bell, said: "Euromoney has a lot of attractions to private equity - services which are in demand, a strong balance sheet and the opportunity to make big improvements to profit margins.

"The company has been sharpening its focus thanks to a mixture of self-help measures and strategic deals. It has been reaping the benefits of bolt-on acquisitions which have helped to strengthen its data intelligence capabilities, and its events business has also been recovering from Covid disruption.

"A takeover would be a short-term win for shareholders given how the latest proposal is at a significant premium to last Friday’s closing price of £10.94 but it would also see yet another quality business leave the UK stock market, which is negative for investors looking at the London Stock Exchange for long-term opportunities."