UBM completes PR Newswire sale, announces special dividend

17th Jun 2016 07:51

(ShareCast News) - Trade publication and events company UBM confirmed on Friday that it has completed the sale of its PR Newswire division to Cision - a business controlled by GTCR Canyon Holdings.The FTSE 250 firm said the total net cash proceeds of the transaction are £490m, after adjustments for transaction expenses, debt-like items, tax and a £10m contribution to UBM's pension scheme.As it previously announced, UBM said it will return £245m of the proceeds to shareholders through a special dividend, with an associated eight-for-nine consolidation of UBM's ordinary shares as approved by shareholders.The special dividend, set at 55.3p per share, will be payable to shareholders on 8 July.UBM said the associated share consolidation will take place on 27 June."The disposal of PR Newswire is a significant milestone in the implementation of our 'Events First' strategy," said UBM chief executive Tim Cobbold."UBM is now focused on the attractive, high-growth and high-margin events sector and we continue in the pursuit of our ambition to become the world's leading B2B Events business."The transaction allows us to make a significant return of capital to shareholders and, at the same time, retain funds to invest in high-quality, accretive, bolt-on acquisitions where we continue to see a good pipeline of opportunities, while maintaining appropriate financial discipline," Cobbold explained.