Ascential says dividend from potential Hudson MX sales unlikely

11th Sep 2024 07:53

(Sharecast News) - Ascential, the B2B media and events company that's being taken over by Informa, announced on Wednesday that the sale of part-owned Hudson MX is unlikely to yield a special dividend for shareholders.

Atlanta-based media tech group Hudson MX, in which Ascential holds a 36.5% stake, has been up for sale since October 2023 but talks are still ongoing with multiple parties.

However, Ascential has now said it "believes that it is unlikely that the proceeds of any sale will be sufficient to permit a distribution of net sale proceeds in accordance with the terms of the [Informa takeover] scheme".

Ascential, which agreed to a £1.2bn acquisition by Informa in July, explained that any sale is unlikely to be structured as a divestment of Hudson MX shares, as required for the purposes of a permitted dividend under the terms of its takeover.

"The Ascential board therefore does not currently expect a permitted dividend to be declared," the company said.

Ascential shares were down 1% at 564p by 0847 BST.