Informa in tax move to Switzerland

Lloyd's List publisher-to-global exhibitions promoter Informa is moving its tax base from London to Zug in Switzerland after the changes in last week's British Budget.

The media group is following competitors like United Business Media and WPP who moved their tax domicile to Dublin last year.

Informa chief executive Peter Rigby said eventually the move would save the company, "between £10 million and £15 million a year but will mean no less tax at all will be paid to the British Treasury."

He said Budget changes to the taxation of intellectual property rights would eventually have pushed Informa's tax rate from its current 26%-27% to about 32%. The move to Switzerland will stop that happening.

At the same time Informa launched a £242 million rights issue at 150p a share, a massive discount on last night's closing price of 297¼p. Informa is paying underwriting and other fees totalling £13 million. Shares bounced on this morning's news - up 28¾ at 326.

Rigby admitted: "At this stage of the cycle we are a little over-geared. We've talked with our shareholders and they agree debt should come down so I'm pretty sure the rights issue will be well supported."

Rigby also said: "I have no plans at present to move to Switzerland myself."