WPP AUNZ Accepts Increased Buyout Offer

WPP AUNZ has accepted an increased offer from its majority shareholder WPP, for the remainder of the company. The cash price of 70 cents per share means the total payable would be approximately $AUD 230m.

WPP currently holds a 61.5% stake in WPP AUNZ, and made its initial proposal to take 100% ownership of the business at the end of November. The revised proposal of 70 cents per share, up from the initial offer of 55 cents per share, has now been accepted by WPP AUNZ, but will be conditional on approval by 75% of WPP AUNZ shareholders and customary regulatory approvals. WPP says the proposed acquisition is in line with its global strategy of simplifying its structure.

WPP AUNZ CEO Jens Monsees (pictured) described the proposed takeover as being in the 'best interests' of minority shareholders, adding that the deal is the first step and includes agreement to a meeting with a shareholder vote on the offer. Yesterday, WPP AUNZ entered a trading halt, connected to the takeover process.

Last year, WPP AUNZ sold its entire stake in insight and analytics arm Kantar in Australia and New Zealand, as part of WPP's global sale of 60% of Kantar shares to private equity firm Bain Capital. Yesterday, Kantar announced that it has agreed to sell its Health division to global healthcare technology provider Cerner, in a $375m all-cash transaction.

Web sites: www.wppaunz.com and www.wpp.com .

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