WPP in Discussions to Buy Chime

WPP and buyout specialist Provident Equity Partners are in 'advanced discussions' to buy UK marcoms group Chime Communications for around £350m.

Chime's Insight & Engagement Group (CIE) includes digital specialist Watermelon, qual recruitment arm CherryPicked, fieldwork agency Facts International, and full service agencies Opinion Leader and CIE. For the full year 2014, CIE operating profit increased 10% to £3.1m from £2.6m in 2013, while for the group as a whole, Chime posted an 18% revenue rise to £198.9m (2013: £168.0m), while operating profit was up 24% to £32.2m (2013: £26.0m).

Marketing services giant WPP already owns nearly 20% of Chime, and the latter has confirmed that the deal on the table is for a potential cash offer for the entire issued share capital of Chime for £3.65 a share, plus an interim dividend for the current year of £2.53 per share.

Chime's Board has set up an independent committee who are engaged in discussions with the consortium, but in a statement, says that there can be no certainty that the consortium will proceed to make an offer for Chime. The company says that a further announcement will be made in due course.

Web site: www.chimeplc.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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