9th Apr 2024 17:06
M&C Saatchi PLC - London-based communications company - Announces divestment of shares in the M&C Saatchi South Africa Group. The group includes M&C Saatchi Abel, Connect, Levergy, Razor, Dalmatian and Black & White. Says the shares are being acquired by "existing local leadership teams", comprising the directors and minority owners of the group. In 2023, the South Africa Group generated a consolidated post-tax profit of GBP1.3 million. The cash consideration for the shares is GBP5.6 million, and M&C Saatchi says the divestment aligns with its strategy "to simplify its operating structure while retaining its valued affiliation with this South African group of agencies". Last week, M&C Saatchi divested certain French associate investments, including Cometis, Australie, and M&C Saatchi Little Stories, for a consideration of EUR1 million.
Executive Chair Zillah Byng-Thorne says: "We look forward to continuing our collaboration with M&C Saatchi Abel and the South Africa Group as our trusted partners in the dynamic African markets. They have a truly vibrant Africa network of agencies servicing large global brands and this is an exciting development which is very much a win-win for both M&C Saatchi and the M&C Saatchi South Africa Group."
Current stock price: 169.00 pence, closed down 1.2% in London on Tuesday
12-month change: down 10%
By Hugh Cameron, Alliance News reporter
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