National World has confirmed that it is in the early stages of exploring a takeover of publishing rival, Reach.
The publisher of the Yorkshire Post and Lancashire Post is much smaller than Reach, with a market value of £50m, compared to Reach’s £330m.
However, National World’s Executive Chairman, David Montgomery, said the group had been eyeing acquisition opportunities for more than 12 months – indeed since it bought JPI Media for £10.2m.
Montgomery has history with Reach. He was CEO of Mirror Group in 1999, it merged with Trinity to become Trinity Mirror and then Reach.
He also sold his former business, Local World to the publisher in 2015, for £220m and the 2 companies went head-to-head over the purchase of JPI Media.
In a statement, National World said:
“The Board of National World plc notes the recent press speculation regarding a potential transaction involving Reach plc.
“National World confirms that it is at the early stages of exploring a possible offer for the entire issued and to be issued share capital of Reach. National World has not yet approached the Board of Directors of Reach with regard to the Possible Offer.”
By issuing the statement, it moves into an “Offer Period” in accordance with the Takeover Code. That means that National World has until 5pm on 1st December to either make a firm intention of an offer, or announce that it’s not proceeding any further.
Reach responded to National World by issuing the following statement to the Stock Exchange:
“The Board of Reach notes the announcement by National World that it is considering a possible offer for the entire issued and to be issued share capital of the Company. The Board of Reach confirms that it has not received an approach from National World.
“The Board will issue a further statement if and when appropriate. In the meantime, Reach shareholders are strongly advised to take no action.”
