The Scotsman and Yorkshire Post owner National World recommends shareholders accept takeover

“The Board remains in control of the business and that means remaining open to the possibility of a superior offer whilst continuing to pursue its strategic priorities” - National World

The Scotsman and Yorkshire Post owner National World has reached an agreement to sell the company to its largest shareholder, Media Concierge, in a £65.1 million takeover deal.

The National World board has given its backing to an all-cash offer worth 23p a share.

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The purchase of the company, a move which will result in National World being delisted and entering private ownership, is now subject to a full shareholder vote.

The Scotsman

A spokesman for National World said: “The Board remains in control of the business and that means remaining open to the possibility of a superior offer whilst continuing to pursue its strategic priorities.”

Media Concierge, which already owns a 28% stake in National World, runs a raft of local newspapers in Ireland as well as direct mail and advertising operations.

The recommended deal comes after National World rejected a previous potential offer from Media Concierge, worth £56.2 million, or 21p per share, which was put forward last month.

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Media Concierge has given assurances not to make “material” job losses across editorial and production teams, which account for around two-thirds of employees at National World, or to close any local news brands.

But the firm warned there could be “material job reductions in areas of overlap” across the two companies as it looks to make savings following the deal.

It said: “Once National World ceases to be a listed company, a limited number of public company-related functions may become unnecessary and therefore be reduced in scope.

“However, Media Concierge has not yet developed any firm intentions in this regard.”

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Media Concierge added: “No proposals have been developed as to how any such reduction will be implemented, but Media Concierge would approach any such plans in an open and transparent manner.”

It also plans to shift National World’s headquarters from Leeds to London, but retain the office in Leeds and not shut any locations across the UK.

“Media Concierge intends to invest in the company’s editorial output and preserve the nature of local journalism, and as a result does not intend to close down local newsbrand locations,” it said.

The potential buyer is among the original backers of National World, which snapped up regional newspaper publisher JPI Media for £10.2 million in 2020.

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