Daily Mail publisher to sell insurance unit RMS to Moody's for $2 billion

FILE PHOTO: A clock face is seen outside of the London offices of the Daily Mail newspaper in London, Britain, April 28, 2018. REUTERS/Toby Melville

(Corrects price to 1.425 bln (not 1.452 bln), paragraph 1)

LONDON (Reuters) – The publisher of Britain’s Daily Mail said on Thursday it had agreed to sell its insurance risk business RMS to Moody’s Corporation MCO.N for about 1.425 billion pounds ($1.98 billion) in cash.

Chief Executive Paul Zwillenberg said Daily Mail and General Trust had built up RMS in recent years by investing in its software and data analytics, creating substantial shareholder value.

“We have decided that now is the right time to monetise our investment in RMS at a premium valuation,” he said.

DMGT said the price achieved was in line with its expectations last month when it said the group’s founding family and leading investor, the Rothermeres, said they were ready to buy the group outright.

The Rothermeres deal was contingent on the sale of RMS and the completion of the listing of online car seller Cazoo, which DMGT partially owns.

DMGT said its intention to distribute proceeds of the RMS sales, along with its cash and its stake in a listed Cazoo via a special dividend of about 610 pence, was unchanged.

($1 = 0.7187 pounds)

($1 = 0.7181 pounds)

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