FTSE 250-listed events company Ascential PLC (GB:ASCL) is weighing a takeover offer from its rival firm Informa PLC (GB:INF). Ascential shares soared 20% in Thursday’s trading session, while Informa ended the day almost flat.
Informa is a publishing group that specializes in events, exhibitions, and digital services. Similarly, Ascential helps brands with its events and advisory services.
More on Informa-Ascential Takeover
Yesterday, Ascential confirmed that it has received a proposal from Informa to acquire all of its existing and forthcoming shares at 568p per share. The deal values Ascential at more than £1.1 billion.
Ascential also stated that a definitive offer is not guaranteed. However, the board is engaged in discussions with Informa and may endorse it. According to UK takeover rules, Informa must confirm its intentions by August 20, 2024.
Is Ascential a Good Investment?
Ascential handles mega events like the advertising festival, Cannes Lions, and fintech conferences via its division Money20/20. Analysts from Peel Hunt believe these events are top-notch, with Cannes Lions being described as the “Oscars” of the advertising industry. These high-growth events could position Ascential for a premium valuation.
Peel Hunt further noted that Ascential has divested from less successful events over the years, allowing it to dominate pricing and secure substantial sponsorship deals.
In 2023, Ascential reported robust growth and announced its plan to return £850 million to shareholders through a combination of a tender offer, special dividend, and buyback programs. During the year, the company’s revenues from continuing operations rose 13% year-on-year to £206.4 million. Meanwhile, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) reached £56.4 million, marking a 17% increase from 2022.
What is the Price Prediction for Ascential Stock?
On TipRanks, ASCL stock has received a Strong Buy rating based on three Buys and one Hold recommendation. The Ascential share price prediction is 393.25p, which is 12% below the current price level.
