Ascential shares soar over 30 per cent on £1.4bn sell-off
Shares in UK-based data and technology company Ascential soared by as much as 34 per cent today after it offloaded two divisions to focus on its events business.
The FTSE 250 company will sell off its digital commerce and consumer research divisions for a combined total of £1.4bn, in a reportedly ‘messy’ break-up.
US-listed advertising giant Omnicom has forked out £741m for Ascential’s digital commerce business. New company Wind UK Bidco 3, established by private equity firm Apax Partners, is buying the product design unit for up to £700m.
JP Morgan is acting as lead financial adviser to the company, which plans to dish out £850m of the proceeds to investors.
Following the split, Ascential will focus on events such as the Cannes Lions marketing festival and Money 20/20 fintech conference in Las Vegas.
Shares crept down to 25 per cent by midday.
Ascential, which has been undergoing a strategic review since April last year, announced the split back in January.
Scott Forbes, the Ascential chairman, said the move would “enable us to achieve the objectives of the strategic review, addressing the distinct investment propositions of Ascential’s three businesses, while also better positioning each business to achieve their growth ambitions”.