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Mitchells board recommends $363m Aegis deal

The board of Australia’s biggest media buyer Mitchell Communication Group has recommended to shareholders that they accept a bid from Aegis to purchase the company for $363m.  

In a joint statement from MCG and Aegis released to the ASX  this afternoon, the company said:

“If the transaction is approved, Harold Mitchell, founder and Chairman of Mitchell, intends to become a significant shareholder in Aegis and lead the combined Aegis Media Pacific business.”

The statement added: “If the Scheme is implemented, Mr Mitchell, being a 30% shareholder, intends to take his consideration in Aegis shares, becoming a significant shareholder in Aegis. He has further undertaken not to dispose of 85% of the shares he receives in relation to this transaction for a period of 24 months after the date that they are issued to him. Mr Mitchell also intends to lead the combined Aegis Media Pacific business as Chairman.”

Harold Mitchell said in the statement:

“I am delighted that we have reached agreement with Aegis over a deal which I believe is in the best interests of our people, our clients and our shareholders.

“Aegis is the best placed of the global agency groups for the convergent future, with a strong focus on digital and media. We are convinced they have enormous growth ahead of them and having Mitchell as part of their global network will be an important part of achieving that. That is why I intend to become a significant shareholder in Aegis if the transaction is approved.”

While Mitchells dominates Australian media buying with a spend of more than $1bn, Aegis is much weaker in Australia with both of its agencies Carat and Vizeum struggling to make headway.


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