Wishing on a star

7 December 2007 By George Hay Follow @gfhay

Emap is selling its consumer and radio businesses but keeping its crown jewel trade magazines and events. The bids were too low for management s taste. So they are betting that the business will be worth a good bit more later. Some shareholders don t want to wait.

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Emap has sold its consumer magazine and radio businesses following a strategic review of its portfolio. German group Bauer has paid £1.14bn for the pair, a multiple of 2.2 times 2007 revenue and 11.2 times 2007 operating profit.

The media company is now left with its businesstobusiness (B2B) arm, which has a rumoured valuation of £1.3bn. Revenues in the B2B break down as 43% events, 32% business magazines, and 25% online information.

Finance director Ian Griffiths declined to give details of the tabled bids for the B2B arm, but said they undervalued it because they did not give a premium for the quality of the business or loss of management control.

Emap's share price had fallen 9% to 747p by afternoon trading.

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