WPP Takes Lion's Share of Scangroup

WPP is increasing its stake in Kenya-based marketing services firm Scangroup Limited, JV partner of its subsidiary Millward Brown, and will now hold a majority (50.1 percent of shares).

WPP has increased its stake from 27.5 percent (acquired precisely four years ago). Approvals from the Nairobi Securities Exchange, on which Scangroup is traded; from shareholders; and from the Capital Markets Authority are still required, and the agreement includes an exemption from the requirement to make a full takeover offer.

Scangroup was founded in 1982 and listed in 2006, and offers a broad range of advertising and marketing services. It employs more than 790 people in offices in Kenya, Ghana, Nigeria, Rwanda, Tanzania, South Africa and Uganda, and had consolidated revenues as at 31st December 2012 of KES 4.2 billion (£31.0m). It already has a longstanding joint venture with WPP research company Millward Brown, covering East and Central Africa and, since 2010, West Africa.

WPP - whose CEO is Sir Martin Sorrell (pictured) - says the investment is 'a further step towards its declared goal of developing its businesses in the fast growing economies of Africa, as well as Asia Pacific, Latin America, the Middle East, Central and Eastern Europe.' At present, the Group (including associates) collectively generates revenues of US$700m across the continent of Africa, and employs 26,000 people.

Home pages: www.millwardbrown.com and www.scangroup.biz .

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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