Scotsman owner National World launches investigation into suitor amid £56 million takeover approach

“The board has confidence in National World’s strategy for value creation as an independent business but acknowledges the potential merits of the possible offer” - National World

National World, the media group that owns The Scotsman, has asked shareholders to take no action in relation to a £56.2 million takeover approach amid an ongoing investigation into alleged “invoicing irregularities”.

Media Concierge, which runs several newspapers in Ireland as well as direct mail and advertising operations, put forward a potential offer of 21p per share for National World on October 31, it emerged today in a stock exchange announcement. This represents a 40 per cent premium against the group’s share price at the close of trading on Thursday, November 21.

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The suitor, which holds a 28 per cent stake in National World, whose other publications include the Edinburgh Evening News and Scotland on Sunday, said it believes this “provides a highly attractive and deliverable opportunity for National World shareholders to realise their investment at a substantial premium in cash”.

The Scotsman

Responding to the approach, National World said it had undertaken a “significant amount of work” with its financial and legal advisers to evaluate the potential offer, adding: “The board has confidence in National World’s strategy for value creation as an independent business but acknowledges the potential merits of the possible offer.

“On October 1, prior to the approach by Media Concierge, the company was made aware of a potentially systemic pattern of historical invoicing irregularities in relation to the activities of entities affiliated with Media Concierge. The company commenced an investigation of these matters.

“In addition, entities affiliated with Media Concierge are currently inappropriately withholding revenues due to the company totaling £4.4m. The company has requested access to historical records to facilitate the Investigation and enable the possible offer to be fully evaluated. A forensic auditor is on standby to assist with the Investigation.”

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It added: “The company confirms that it holds £10.9m of cash balances notwithstanding revenues withheld by entities affiliated with Media Concierge. There can be no certainty that any offer will be made and National World shareholders should take no action at this stage.”

Media Concierge later said the allegations were “denied in their entirety”.

The potential buyer is among the original backers of National World, after it was set up as a media investment vehicle by former Mirror Group chief executive David Montgomery in 2020. In August, National World revealed that group revenues grew 17 per cent to £48.8m for the first half of 2024, as it also increased operating profits for the period to £4.7m from £2.9m a year earlier.

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