Daily Research News Online no. 23566 - Ipsos Simplifies Ownership Structure

Ipsos Simplifies Ownership Structure

November 15 2016

Ipsos has announced changes in its ownership structure, designed to simplify it and ensure the company's independence over the long term - following the death in December 2014 of co-founder Jean-Marc Lech.

Having started Ipsos in 1975 and following rapid growth, Lech and Didier Truchot created a joint company in April 1988, LT Participations, which was to 'ensure the growth and guard the independence of Ipsos for more than 25 years'. With Lech's passing, his stake in LT Participations was acquired in June 2015 by Truchot's company DT & Partners, leaving Truchot (pictured) temporarily in sole control of LT, and therefore of Ipsos. On 31st October 2016, LT Participations held 25.1% of Ipsos' share capital and 39.3% of its voting rights.

The most recent changes began in September when 144 Ipsos executive managers and senior managers around the world took part in the creation of Ipsos Partners SAS, raising funds with which to take a 19% stake in the share capital of DT & Partners (Truchot holds the remainder). This oversubscribed transaction raised around EUR 9.5m, and served to 'secure the long-term role of DT & Partners as Ipsos' reference shareholder', marking the end of 'a painful and uncertain period'. Truchot and DT & Partners now hold around 10% of Ipsos' share capital.

The strengthening of DT & Partners with its twin shareholder entities restores a 'new balance', Ipsos says, allowing the group to remain 'a global player, leader in its areas of expertise and its specialisations and independent of any other influence'. It also allows the removal of an unnecessary layer of complexity: the Boards of Directors of Ipsos and LT Participations met yesterday morning and approved a merger between the two companies.

LT Participations is currently 52.2% held by Truchot and DT & Partners, 35.8% by Sofina and 10.4% by FFP Invest, with the remainder being held by group managers. With the merger deal, the company's debt will now be paid down in full through the sale of Ipsos shares held in the portfolio, for a total amount of around EUR 65.5m. Ipsos will use its share buy-back programme authorisations to acquire the block of shares sold by LT Participations, thus avoiding potential dilution, and has employed independent experts to ensure this is fairly carried out. Due on 21st November, this share purchase will be financed in full through Ipsos' available cash and will not affect its continuing investment in growth.

Ipsos and LT Participations will hold EGMs on 29th December to rule on the merger, and Ipsos has also filed a draft document E with the services of the Autorité des Marchés Financiers which will be asked, in accordance with article 236-6 of its General Regulation, to confirm that the merger will not lead to a public buyout offering.

Truchot sums up the effects of the changes: 'This merger marks a decisive new step for our Group because it opens the way for Ipsos to expand the scope of the ownership interest of the Company's executive management. It is a concrete demonstration of my desire and that of the Ipsos Board of Directors to ensure the Company's independence over the long term, an essential factor behind its strength and a guarantee of its neutrality'.

Web site: www.ipsos.com .