London-listed exhibitions group Informa is exploring selling a stake in its portfolio of Monaco-based luxury events, which include the Monaco Yacht Show and Top Marques Monaco, two people familiar with the matter said.
Informa, valued at nearly $14 billion, is working with an investment bank to gauge interest in the package, the people said. The collection generates around $200 million in annual revenue, and a stake sale could generate about $200 million, one added.
A spokesperson for Informa declined to comment.
The sources, who asked not to be identified because the discussions are private, said talks are ongoing and there is no certainty a transaction will take place.
POSSIBLE BIDDERS MAY INCLUDE SOVEREIGN WEALTH FUNDS
Reuters could not determine how the recent Middle East conflict might affect the process. Informa said in recent days that the vast majority of its business-to-business operations were unaffected.
Its shares fell 11% on Monday before recovering.
Possible bidders for a stake are likely to include sovereign wealth funds, the person said.
The Monaco-based assets sit within Informa’s Luxury & Lifestyle division, which comprises the Art Monte-Carlo and Boat International Publishing Group, the Palm Beach Boat Show, the Fort Lauderdale International Boat Show and Art Miami.
Sovereign wealth funds in the Gulf have been investing heavily in the media and entertainment sector as well as in the events business as they look to diversify their oil-rich economies and attract increasing foreign investment and people to the region.
For example, ADNEC, which is backed by Abu Dhabi, hosts one of the biggest energy conferences in the Middle East, while Qatar’s QIA is a majority shareholder in Monumental Sports & Entertainment, which owns team franchises, venues and media networks across the U.S.
Informa is also active in academic publishing via Taylor & Francis and data and marketing services via TechTarget, in which it holds a 58% stake, according to LSEG data.
