National World PLC was the target of a takeover proposal announced on Friday by its largest shareholder, Media Concierge (Holdings) Ltd, which already holds a 26% stake in the company, valuing the multimedia publisher at over £56 million.

The offer, valued at £56.2 million or 21 pence per share, represents a 40% premium to National World’s closing price on Thursday. It seeks to acquire the 74% of shares that Media Concierge or its affiliates do not already own, implying an enterprise value of £43.2 million.

National World shares jumped 23% to 18.50 on Friday morning, giving the company a market capitalisation of £49.5 million.

Media Concierge, a UK-based media representation and advertising services provider, said the proposal values National World’s total issued share capital at £56.2 million, highlighting what it calls a ‘highly attractive and deliverable opportunity’ for shareholders to realise their investment at a significant premium in cash.

The proposed offer values National World at an enterprise value multiple of 7.2 times statutory earnings before interest, taxes, depreciation, and amortisation and 3.8 times adjusted Ebitda for the 12 months ending June 29.

Despite the proposal, submitted on October 31, Media Concierge said it has not ‘received substantive engagement to date’ from National World, owner of titles such as the Scotsman and the Yorkshire Post. The firm is urging shareholders to press the company to ‘engage constructively’ on the potential deal.

Media Concierge said the offer is conditional on the National World board’s recommendation and the confirmatory due diligence. Additionally, the proposal requires irrevocable undertakings from National World directors regarding their shareholdings in the company, ensuring their commitment to the terms of the deal in a form acceptable to Media Concierge.

National World has not yet commented on the proposal.

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