The publisher of The Yorkshire Post is poised to be taken over by its biggest shareholder following an acrimonious power struggle.
The board of National World, which is run by veteran media executive David Montgomery, has said it is minded to accept an improved takeover approach by Malcolm Denmark, an Irish newspaper tycoon and race horse owner.
Mr Denmark’s Media Concierge, which already owns 25pc of National World, has tabled an improved potential offer of 23p per share in cash, valuing the company at almost £62m.
In an update to the stock market on Friday, National World said it was minded to recommend the bid if a firm offer is made. It had not engaged with a previous 21p per share offer.
If confirmed, the deal means Mr Montgomery will relinquish control of a newspaper group whose titles include The Scotsman and The Yorkshire Post. He is executive chairman and holds a 7pc stake.
It also marks an end to hostilities between the 76-year-old and Mr Denmark following a power struggle.
Mr Montgomery last year mounted a failed takeover bid for The Telegraph in a deal that would have required his company, valued at just £40m at the time, to raise large amounts of new capital.
It is thought that Mr Montgomery hoped to use the fundraising to dilute Mr Denmark’s stake and take back control of the company.
The two sides have also been locked in a bitter legal dispute.
Following Mr Denmark’s initial approach last month, National World said it was investigating potential accounting irregularities and accused Media Concierge of withholding £4.4m of revenues.
Mr Denmark’s company described the allegations as “completely baseless” and said the amounts being withheld were subject to a “substantial counter claim … for a number of breaches of contract”.
The two companies have agreed to a temporary halt in legal proceedings while discussions about the takeover are ongoing.
The deal will mark an end to Mr Montgomery’s reign in local newspapers across the UK.
The former Mirror Group Newspapers boss first started buying up regional titles in 2012. In 2020, he expanded his empire with the acquisition of more than a dozen papers from collapsed publisher JPI Media.
Mr Montgomery has gained a fearsome reputation as a cost-cutter, slashing more than a quarter of jobs at National World in a drive for efficiency.
The takeover will significantly expand Mr Denmark’s control of newspaper assets.
The 69-year-old began his career in advertising but is now the largest regional newspaper publisher in Ireland with 22 titles. He is also a prominent owner of racehorses in the UK and Ireland.
This news appeared first on @Telegraph
