Pounds 193m value for publisher

MIDLAND Independent Newspapers, publisher of the Birmingham Post, will be valued at pounds 193m by its offer for sale, writes Alison Eadie.

The offer price is 140p per share, giving a price/earnings multiple of 21 times current year earnings and 38 times historic earnings. The notional gross dividend yield will be 2.5 per cent.

Morgan Grenfell has underwritten the offer. It is placing 50.7 million shares with institutions and provisionally placing a further 27.3 million subject to clawback. Applications must be in by next Thursday and dealings begin on 17 March.

Chris Oakley, chief executive, said the libel writ issued against Birmingham City Football Club's owner, David Sullivan, and its managing director, Karren Brady, was proceeding but no more had been heard from the pair. Ms Brady had demanded MIN increase its sponsorship of the club, and the affair had threatened to disrupt the float.