WPP plc makes takeover bid for WPP AUNZ
WPP plc, majority shareholder of WPP AUNZ, has sent an unsolicited proposal to acquire all of the ordinary shares in WPP AUNZ that it does not already own at a price of $0.55 per share in cash.
WPP plc has made a takeover bid for WPP AUNZ
In an announcement that was published on the ASX at 8:20am November 30, it was noted that “WPP plc has reserved the right to withdraw the Proposal at any time prior to execution of an implementation agreement in relation to the Proposal. WPP plc currently own 61.5% of the issued capital in WPP AUNZ.”
The announcement also notes that “The Independent Directors of WPP AUNZ, along with its advisers, are considering the Proposal and shareholders are advised to take no action in relation to WPP plc’s Proposal until they receive the Independent Directors’ formal recommendation. WPP AUNZ will update shareholders, in accordance with the Company’s continuous disclosure obligations, in due course.”
WPP AUNZ’s share price is on the recovery (click for a larger image)
WPP AUNZ shares currently sit at $0.41.
The news comes just over four and a half years after the merger between STW Group and WPP received the final tick of approval from shareholders and what would be the last ever STW Group AGM.
At the time, CEO Mike Connaghan told Mumbrella the review of STW operations was likely to see more divestments and internal mergers of brands.
“Clearly we’re here to grow this business; if we’re not growing it then someone else will. I think there is some really clear low-hanging fruit where we can be better together and certainly the synergies of the businesses and bringing people closer together are absolutely there,” Connaghan said.
The merger turned WPP AUNZ into the fifth-largest part of the company in the world and the ASX listing was changed from SGN (the last link to John Singleton’s original listing of the agency), while STW (Singleton Tate WPP) was retired as the local brand.
Since then, a number of changes have been made within WPP AUNZ. Recently it was announced WhiteGrey and Switched on would become part of the AKQA Group while PPR became part of BCW, a number of markets moved to a campus model, including Adelaide, Perth, Brisbane, Auckland and Wellington while WA agency Meerkets was acquired.
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Damian is the head of content at Mumbrella, overseeing all content and editorial within the business. He has worked as a journalist and communications consultant across a number of industries for over 15 years. He has been with Mumbrella for more than three years, initially running event content. Damian was previously print editor of AdNews.
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