Zephyr Bidco and ZPG Plc have this morning announced that they have reached agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of ZPG Plc by Bidco at a price of 490p per ordinary share, a material premium to the volume weighted average price for the three month period ended 10 May 2018, says DMGT.
The Board of ZPG Plc, which includes two representatives of DMGT, intends to unanimously recommend this offer to ZPG Plc shareholders and DMGT has given an irrevocable undertaking to accept the offer in respect of its entire holding, amounting to 29.8% of ZPG Plc’s issued share capital. Accepting this offer is consistent with DMGT’s stated strategic priorities of increasing portfolio focus and enhancing financial flexibility.
Bidco’s proposed acquisition of ZPG Plc is to be implemented by means of a Scheme of Arrangement and it is anticipated that, if approved by shareholders, this will become effective in the third quarter of calendar year 2018.
Paul Zwillenberg, Chief Executive, commented: “The recommended all cash offer for ZPG promises to deliver a very significant return for DMGT. The sale of our stake, pending shareholder approval at ZPG, fits with our long track record of successfully identifying new opportunities, incubating young businesses and supporting their growth to create value for shareholders.”
Should the Silver Lake offer complete, this will deliver proceeds of c £640 million to DMGT’s shareholders, and bring total cash returns from the investment in online property to £890m. This is more than 14 times the cost of the investment, or an internal rate of return of 30% since 2004, when DMGT acquired Findaproperty, says DMGT.