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VCCP parent company Chime mulls buyout offer from WPP and Providence

ChimeCommunications group Chime, the owner of creative agency VCCP which is behind the comparethemarket.com.au meerkats campaigns, has confirmed it is considering a sale to Providence Equity Partners and WPP.

Chime confirmed the buyout offer after the news was broken on Sky News in the UK, stating it was considering a cash offer for its entire issued share capital at $7.79 a share, plus an interim dividend for the current year of 54 cents per share.

WPP is the world’s biggest marketing holding group, which in Australia owns agencies including MEC, Mediacom, JWT, George Patterson Y&R and Mindshare, and already holds an approximate 18 per cent share in Chime Communications.

In its announcement Chime was cautious to note there is “no certainty” Providence Equity Partners and WPP will make an offer for chime.

“A further announcement will be made in due course,” the statement said.

Chime Communications reported pre-tax profit of  $64.2m for the 2014 year, with operating income of $429.2m.

Locally VCCP clients include comparethemarket.com.au, Fitness First and ING Bank. Earlier this year it announced Mark Harricks as its first executive creative director in Australia.

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