UBM plc announces proposed sale of Data Services businesses

Concluding the strategic review initiated in July 2012, UBM plc today announces that it has received a binding offer from Electra Partners LLP to purchase a portfolio of UBM's Data Services businesses (“Deltaâ€') for consideration of £160m including a £40m vendor loan note. The offer is subject to consultation with the relevant works council in France and certain regulatory and other approvals.

Delta represents the bulk of UBM's Data Services segment and includes its Health, Technology and IP, Trade & Transport, and Paper business units. In 2011, these businesses generated revenue of £190.0m and adjusted operating profit of £27.7m. In 2012, these businesses generated revenue of £179.3m and adjusted operating profit of £27.4m. As at 30 June 2012 the businesses had gross assets of £295.5m.

Upon completion, the cash consideration of approximately £100m (net of working capital adjustments) will be used to repay bank debt. The vendor loan note, which will be held at amortised cost, will carry a 6% PIK coupon and has a final maturity of six years. Credit Suisse acted as sole financial adviser to UBM on the transaction.

For UBM as a whole, 2012 fully diluted adjusted EPS is expected to be approximately 58 pence. Events earnings have been in line with our expectations despite slightly lower revenue growth than anticipated. PR Newswire has performed in line with our guidance. Earnings in Data Services have fallen short of guidance but are expected to be offset by lower than anticipated corporate costs and tax charge.

David Levin, CEO, UBM plc said:

“This transaction is a significant strategic step forward for UBM: by divesting Delta we simplify UBM's business, improve the quality of our earnings, enhance our underlying growth rates and remove the challenges inherent in the continued transition to digital data delivery. We can now look forward to focusing on further developing UBM as a fast-growing and increasingly profitable eventsled,marketing services and communications business.â€'

UBM plc will issue its Full Year results on 1st March 2013 and host an Investor Presentation, at the London Stock Exchange, at 11am that morning.