(Alliance News) - Rothemere Continuation Ltd is close to inking a deal with trustees of Daily Mail & General Trust PLC, which marks the final obstacle to the company's takeover of the London-based newspaper publisher, Sky News reported on Monday.
Details of the pension agreement remain unclear, but Sky News reported that the deal between Rothemere Continuation and the pension trustee involve a sum of more than GBP400 million to reassure trustees that their interests are protected.
Negotiations between the company and the trustees are said to have involved several offers, and is the main reason why the bid's deadline has been extended three times, the most recent extension to November 25.
In mid-July, Rothermere announced the potential takeover with a view to take the newspaper publisher private. At the time, DMGT said Rothermere was prepared to make a 251p per share cash offer to take the remainder of DMGT private, following two disposals. This would give an enterprise value to the remainder of DMGT of GBP810 million, the company said at the time.
Jonathan Harmsworth - who owns Rothemere Continuation - holds a 29% stake in DMGT, according to Morningstar.
https://news.sky.com/story/rothermeres-on-brink-of-400m-pension-deal-to-take-daily-mail-owner-dmgt-private-12457384
Shares in Daily Mail & General Trust closed 1.4% higher at 1,054.00 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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