Aegis – parent company of Carat and Vizeum – is in advanced talks to buy Australia’s biggest media buying operatiion Mitchell Communication Group, Sky News has reported.
The UK-based City editor of Sky News Mark Kleinman wrote:
“The media buying group Aegis is in advanced talks to buy an Australian rival for about £200m ($350m) in a move expected to enhance its exposure to fast-growing Asian economies.
“I’ve learnt that Aegis’s new chief executive, Jerry Buhlmann, plans to announce the acquisition of Mitchell Communication Group in the next 48 hours, although the exact details are yet to be finalised.
Mitchells has asked the ASX to put it in a trading halt.
Mitchells was founded by Harold Mitchell who is chairman of the company.
The Herald Sun reports that the board of Mitchell Communication Group was to meet this morning to discuss the offer. It suggests that a deal would see the Mitchell family become the second biggest shareholders in Aegis.
If the deal price is accurate, it would be a premium on the company’s current market capitalisation of about $312m.
3.45pm update: The board of Mitchell Communication Group has recommended accepting the $363m deal.