12th Sep 2018 14:39
LONDON (Alliance News) - Derriston Capital PLC on Wednesday said its loss narrowed in the first half of 2018 as it progresses on the acquisition of S4 Capital.
The investment firm said pretax loss narrowed to GBP138,086 in the six moths to the end of June from GBP140,211 reported for the same period a year prior, due to reduced expenses.
At the end of May, the company announced the conditional acquisition of S4 Capital Ltd, a newly incorporated company, backed by former WPP Chief Executive Martin Sorrell. Sorrel left the FTSE 100-listed advertising firm in April following allegations of misconduct.
In July, S4 Capital bought Netherlands-based advertising firm MediaMonks Multimedia Holding BV, after winning the bid over WPP.
According to the media reports, Sorrell received a legal threat from WPP accusing him of breaking a confidentiality agreement with the firm. WPP threatened to deny him GBP20 million in share awards, if he pursued the Media Monks acquisition.
On Tuesday, Derriston convened a general meeting, which will take place on September 27, to seek shareholder approval for S4 Capital acquisition.
"We are delighted to have reached agreement with S4Capital, and their merger with MediaMonks," said Chairman Harry Hyman.
Shares in Derriston remain suspended, readmission is expected to take place on September 28.
Derriston shares were suspended from trading as the merger with S4 is considered a reverse takeover.