(Alliance News) - Informa PLC said Tuesday it plans to sell the businesses within its Informa Intelligence division and return GBP1 billion to shareholders via a special dividend and share buyback programme once the process is complete.
Ahead of a capital markets day in London, the business publisher and events organiser said it wants to focus on two markets where it believes it has leading positions - Academic Market and B2B Markets.
"As part of this investment and growth strategy we are starting a process to divest our portfolio of high-quality, high-performing brands in Informa Intelligence, thereby unlocking value and providing the funds to further strengthen our position in our two growth markets," said Chief Executive Stephen Carter.
Informa Intelligence divides its brands into the categories Pharma, Financial Intelligence, and Maritime Intelligence. The latter includes 300-year-old Lloyd's List.
Once proceeds from the disposals are received, Informa said it will return GBP1 billion to shareholders via a special dividend and a share buyback programme. At the same time, it plans to resume ordinary dividends with a 2022 interim payout. The company will adopt an initial payout ratio of one-third of annual adjusted earnings.
Informa said that, even with its planned returns, it still will have the funding required to invest up to GBP150 million in incremental capital and net operating spending through its 2021 to 2024 strategic plan, which it calls 'growth acceleration plan II'. The Gap II plan calls for returning revenue to 2019 levels, adjusted for disposals, by 2024.
In 2020, revenue dropped to GBP1.66 billion from GBP2.89 billion in 2019, as physical events were cancelled due to the Covid-19 pandemic.
Informa shares were up 5.4% at 505.40 pence, the second best FTSE 100 performer Tuesday afternoon in London.
By Tom Waite; thomaslwaite@alliancenews.com
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