Informa Group PLC
6 March 2001
Informa Group acquires BioTechniques Journal and raises £54.5million through a
Cash and Vendor Placing
Informa Group plc ('Informa'), the business information group, announces that
it has today entered into a conditional agreement to acquire Eaton
Massachusetts Business Trust, publisher of the market leading bio-research
journal BioTechniques, for a total consideration of $32.1 million.
First published in 1983, this monthly US journal and its bi-monthly sister
journal for the European market publishes peer-reviewed articles on original
techniques and applications used by life scientists. It is circulated to
approximately 60,000 scientists in the US and a further 20,000 in Europe.
Revenues for the first quarter of 2001 were approximately 10% ahead of the
same period in 2000 and forward bookings for the remainder of the year are
encouraging. The board of Informa expects that the acquisition will enhance
earnings per share in the first full year of ownership.
The acquisition will be financed through a vendor placing of 3,884,315 new
shares at a price of 560 pence per share to raise £21.8million. Details of the
vendor placing are set out below under the heading 'Vendor and Cash Placings'.
Commenting on the transaction, Peter Rigby, Chairman of Informa said:
'We are delighted to welcome the BioTechniques team to Informa. BioTechniques
is a leading bio-research journal which will give us the powerful publishing
brand that we have lacked in this field and will help us to accelerate our
growth in pharmaceuticals information.'
Vendor and Cash Placings (together the 'Placing')
Under the terms of the Acquisition, Informa is issuing 3,884,315 new ordinary
shares at 560 pence per share ('Vendor Placing Shares').
A further 5,848,390 new ordinary shares are being placed on behalf of Informa
at 560 pence per share ('Cash Placing Shares') raising £32.7million in cash.
The cash raised in the Cash Placing will strengthen Informa's ability to
continue to take advantage of the best bolt-on acquisition opportunities when
they arise. The Vendor Placing Shares and the Cash Placing Shares together
represent approximately 8 per cent of the present issued share capital of
Informa.
In connection with the Placing, Informa has today entered into a placing
agreement ('the Placing Agreement') with HSBC Investment Bank plc ('HSBC'),
pursuant to which HSBC has conditionally agreed to use its reasonable
endeavours to procure subscribers for the Vendor Placing Shares and the Cash
Placing Shares at 560 pence per share, or failing which itself to subscribe
for or acquire such shares.
The Placing Agreement is conditional, inter alia, on the Acquisition being
completed and admission of the Vendor Placing Shares and the Cash Placing
Shares in Informa to the Official List and to trading on the main market of
the London Stock Exchange becoming effective. This is expected to take place
by 13 March 2001.
Completion of the Acquisition is conditional, inter alia, upon the Placing
Agreement being completed and admission of the Vendor Placing Shares and the
Cash Placing Shares to the Official List and to trading on the main market of
the London Stock Exchange becoming effective.
Application will be made to the UK Listing Authority for the New Ordinary
Shares to be admitted to the Official List and to the London Stock Exchange
for such shares to be admitted to trading on the main market of the London
Stock Exchange. These shares will, when issued, rank pari passu, in all
respects with the existing issued shares of Informa, including the right to
receive the final dividend for the year ended 31 December 2000, of 5.07 pence
per share, payable on 29 May 2001 to all holders on the register on 27 April
2001.
For further information
Peter Rigby Chairman
David Gilbertson Chief Executive
Jim Wilkinson Finance Director
Informa Group
020 7453 2222
Heraclis Economides
Clive Rates
HSBC Investment Bank plc
020 7336 9000
Fiona Piper / Lydia Pretzlik
The Maitland Consultancy
020 7379 5151
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