London:
Daily Mail and General Trust Plc (DMGT) said it is in discussions to sell its catastrophe modeling insurance unit, RMS, following a number of third party inquiries.
While discussions are ongoing and there can be no certainty that a transaction will result, the Board of DMGT,which owns the British newspaper , the Daily Mail, believes the terms of the proposed sale, if completed, would realise a premium valuation for DMGT's shareholders.
Should terms be agreed, completion of the proposed deal is expected to take place in Q3 2021 (calendar year).
The disposal of RMS would mark a further significant milestone in the transformation of DMGT, following the disposals in recent years of Hobsons, Genscape and Zoopla, which collectively realised c.£1.2 billion of value for DMGT, as well as the distribution of DMGT's c.50% stake in Euromoney.
On top of the substantial cash proceeds that would arise from the sale of RMS, DMGT will have a further major asset upon completion of the business combination of Cazoo Holdings Limited (in which DMGT currently has a c.20% stake) with AJAX I, as referred to in the announcement made by DMGT on 29 March 2021.
The Board has considered whether, assuming both the completion of the sale of RMS ("RMS Completion") and Cazoo Completion, it would be in shareholders' interests to retain the cash proceeds and the Cazoo Shares or to distribute the resulting value directly to all shareholders, including RCL.
The Board has concluded that it would be in the best interests of shareholders to distribute the value expected to be created upon RMS completion and Cazoo completion through a special distribution and has discussed this conclusion with its controlling shareholder, RCL.
RCL currently owns approximately 36% of DMGT.
Bermuda-registered RCL is owned by the 4th Viscount Rothermere, Jonathan Harmsworth, whose great-grandfather founded the Daily Mail in 1896.
For over 30 years, RMS has led the way in transforming the catastrophe risk industry, helping organizations make better decisions to improve human and environmental outcomes. By combining proven modeling science with powerful advances in technology, RMS Risk Intelligence solutions enable clients to better assess risk and reduce uncertainty.