DMGT reduces stake

DMGT has reduced its holding in Euromoney from 67% to 49%, meaning results will no longer be consolidated and removing a major barrier to investment in ERM for some potential shareholders. Of the 32.2m shares involved, 13.0m have been placed with investors and 19.2m bought back for cancellation, all at 975p, a discount of 13% to last night’s close. The reduced share capital mechanistically boosts the EPS and management has also indicated a review of the dividend payout ratio. We will formally adjust our forecasts when the buyback and cancellation are completed.