The management of the UK’s third-largest regional publisher National World has hit out at a major shareholder proposing a takeover bid, accusing it of financial “irregularities”.
Media Concierge, which on Friday launched a bid for the 72.2% of National World it does not already own, rejected National World’s claims as “baseless”.
Despite the acrimony, Media Concierge revealed that “National World’s advisers have indicated that they would provide Media Concierge with access to limited and confirmatory due diligence”.
National World is the publicly-listed publisher of newsbrands including The Yorkshire Post, The Scotsman and a host of city-focused websites. It was formed by executive chairman David Montgomery in 2021 to acquire the former Johnston Press titles, assisted by investment from Media Concierge.
It is understood that Media Concierge abstained on a vote to re-elect Montgomery for National World’s leadership at its annual general meeting in May. Montgomery won regardless, and National World has since discontinued a deal that had seen Media Concierge subsidiary Mediaforce handle its national print advertising.
Media Concierge is majority-owned by founder Malcolm Denmark, who built the business providing publishing infrastructure to the news industry including newspaper inserts, leaflets, advertising and printing services.
[Read more: Battle for future of National World as shareholder launches takeover bid]
National World responds to Media Concierge takeover bid
Announcing its takeover bid last week, Media Concierge said it had not heard from National World since first proposing to buy out the remaining equity for 21 pence per share, a premium of approximately 40%, at the end of October.
National World has now “acknowledge[d] the potential merits of the possible offer”.
But the publisher claimed that on 1 October, before the takeover was first mooted, it had been “made aware of a potentially systemic pattern of historical invoicing irregularities in relation to the activities of entities affiliated with Media Concierge”.
National World went on to claim that, separately, “entities affiliated with Media Concierge are currently inappropriately withholding revenues due to [National World] totaling £4.4 million”.
The publisher said it had sought further information in order to undertake an investigation and told shareholders to “take no action at this stage”.
Media Concierge responded that the allegations are “completely baseless and are strongly denied in their entirety.
“No evidence has been provided to support them, and the timing of the emergence of these entirely unjustified allegations coincided with Media Concierge’s initial approach to National World.
“The amounts allegedly ‘withheld’ by Media Concierge are subject to Media Concierge’s substantial counter-claim, in excess of the £4.4 million amount, for a number of breaches of contract by National World.
“We have put National World on notice that Media Concierge will hold the makers of these false and misleading statements fully responsible for them.”
A spokesperson for National World told Press Gazette that it has presented “evidence” to Media Concierge subsidiary Mediaforce (London) “concerning its activities”.
“Irrespective, if Mediaforce (London) has nothing to hide then there can surely be no objection to our carrying out a forensic audit?” the publisher added.
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