Financial information publisher and events organiser Euromoney Institutional Investor (LON: ERM) has received a bid approach at near to its all-time high share price. Back in September 2019, the share price ended the day at 1498p and the possible cash offer is 1461p a share.
The potential bidder is a consortium of Astorg Asset Management and Epiris. The initial approach was at 1175p, and it has been increased four times since then. The share price ended the day 26.1% higher at 1380p. The interim dividend of 6.1p a share will still be paid on 24 June.
The potential offer represents 27 times prospective earnings for the year to September 2022, falling to 22 next year.
The Euromoney board is continuing discussions with the bid consortium. The bid would value Euromoney at £1.6bn. Net cash was £12.5m at the end of March 2022.
One of the attractions of the Euromoney business is Fastmarkets, the price reporting and analytics services business. This has extensive data covering minerals, metals, mining, forestry products and some agricultural products. The London Medical Exchange (LME) has adopted Fastmarkets pricing for contracts.
It is important that clear and independent analysis on pricing of commodities is available, particularly in inflationary times. Fastrack revenues grew 17% in the first half compared with 14% for the group, which included a sharp recovery in events revenues.