DMGT Widens Portfolio With Property Bid
Daily Mail and General Trust (DMGT) has tabled a bid for online content firm Fastcrop, seeking to widen its online portfolio with the company’s primelocation.com residential property website.
Primelocation is one of the UK’s leading websites for estate agents wishing to advertise properties online, as well as for listings of properties located abroad.
DMGT’s bid totals £48 million, offering estate agent shareholders, management shareholders and other shareholders 72.78 pence per share in cash.
The deal, which is being made by DMGT’s subsidiary firm Daily Mail and General Holdings (DMGH), looks all but completed, with DMGT securing “irrevocable commitments” to accept the offer from Fastcrop shareholders representing in excess of 75% of each class of the company’s shares.
Commenting on the bid, Ian Springett, chief executive of Fastcrop, said “The offers provide Fastcrop shareholders with an opportunity to realise their investments at an attractive price and we are delighted that shareholders representing over 75% of the share capital of the Company have already irrevocably committed to accept the Offers. We believe that under DMGH ownership the Company will have access to greater financial resources to invest for the continued growth of the business. We are very excited at the prospect of being able to serve a much larger base of estate agents and property seekers.”
Andrew Hart of DMGT added: “The acquisition continues our strategy of making investments to increase our exposure to key areas of the online advertising market. Primelocation is a prize asset for us, complementing our other established businesses. It is one of the leading UK property sites, in a highly competitive sector which is experiencing rapid growth. We intend to continue primelocation’s rapid development and look forward to working with the management team in unlocking the opportunities that will arise out of this transaction.”
The deal follows several online acquisitions by newspaper publishers, including Trinity Mirror’s purchase of Paldonsay Ltd last month, securing SecsintheCity.com for £3.3 million, giving the company control of the leading internet recruitment site for secretarial and administrative jobs (see Trinity Continues Online Recruitment Acquisitions).
The Daily Mail & General Trust: 020 7938 6747 www.dmgt.co.uk