UBM share price jumps on Informa £3.8bn bid

UBM share price jumps on Informa £3.8bn bid

Britain's Informa (INF.L) is in talks about a deal to buy events organizer UBM (UBM.L) for more than 3 billion pounds ($4.14 billion), rekindling plans from nearly a decade ago to create a major business media and conventions group.

The proposed combination is to be effected by way of an acquisition of the entire capital of UBM by Informa for shares and a cash consideration, they said in a statement.

In a statement released early on Wednesday, following on from a starting offer made on Tuesday, Informa offered 1083 Informa shares and 163 pence in cash for each UBM share. The offer represents a 30% premium to UBM and Informa's closing stock prices on Monday.

The initial approach was made by FTSE 100 firm Informa, which has until 13 February to make an offer, or else will be forced to drop its interest.

If a deal were to go through, it would create an industry giant worth north of £9 billion in terms of market capitalisation. "The Combined Group will have the reach and market capabilities to take full advantage of these trends".

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The new group's board of directors would consist of seven non-exec directors from Informa and three from UBM, and the combined company would be 65.5 percent owned by Informa shareholders, and 34.5 percent by UBM shareholders.

They said the proposed combination is expected to result in significant synergies for the merged entity.

Founded in 1998, Informa hosts global exhibitions, conferences, training events and academic publishing.

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Lord Carter, chief executive of Informa, told the Times: "It is clear that the B2B [business-to-business] market is moving to operating scale and industry specialisation".

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