28th Nov 2013 10:31
LONDON (Alliance News) - Advertising and marketing company M&C Saatchi PLC Thursday said that it has agreed to sell a controlling stake in its UK-based media-buying agency Walker Media, to French advertising giant Publicis Groupe for GBP36 million.
M&C Saatchi said that it will sell a 75.1% stake in Walker Media, while retaining a 24.9% stake in the company. It will have the right to appoint some directors to the board, including M&C Saatchi Chief Executive Officer David Kershaw and Finance Director Jamie Hewitt.
Walker Media will become part of Publicis Groupe's ZenithOptimedia Group and will be a key cornerstone of a new global media network to be launched in 2014, M&C Saatchi said.
"Walker Media will benefit from the geographic reach and scale opportunities within ZenithOptimedia and Publicis, whilst importantly retaining the integrity of the Walker Media brand," said Kershaw in a statement.
M&C Saatchi said that a majority of the cash proceeds will be returned to shareholders, while the remainder of the proceeds will be used to fund future investments.
Shares in the company were up 2.4% Thursday morning, trading at 332.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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