Bid queue forms as NOP goes up for sale
AN auction has broken out for market research group NOP, as Lord Hollick put the finishing touches to his clean-up of United Business Media before he quits the business for venture capital giant Kohlberg Kravis Roberts in the spring.
A further major disposal, of UBM's 36% stake in Five, looks increasingly likely after the fifth terrestrial television channel saw last year's maiden profits grow 130% to £19.5m.
Last year, NOP increased profits by 4% to £20m on turnover up 9% at £222m, and the likes of WPP and Taylor Nelson Sofres are likely to be heading the queue.
Analysts reckon the business is worth about £300m, and Hollick, who is going after 30 years, today pledged that a 'substantial part' of the proceeds from a sale will be returned to shareholders.
That is on top of a 33% rise in the dividend to 12p announced today after the group reported pre-tax profits for 2004 of £141m, up 37%.
UBM shares gained 6¼ to 545p following Hollick's pledge. In response, UBS reiterated its 'buy' advice and said it expects there to be a high level of interest in NOP. And with a new chief executive starting in April, it sees further potential for portfolio restructuring, asset sales and redistribution of capital to shareholders.
Meanwhile, Merrill Lynch said it is upping its UBM earnings per share forecasts for this year and next following the results, as it retained its 'neutral' stance.
