23rd Jul 2018 11:33
LONDON (Alliance News) - Advertising company WPP PLC is in early stage discussions to sell a 20% stake in its Chinese operations to Alibaba Group Holding Ltd, Tencent Holdings Ltd and China Media Capital Holdings, Sky News reported Saturday, citing sources familiar with the matter.
Sources told the news agency that the talks could take several months to conclude and are expected to value WPP China at between USD2 billion and USD2.5 billion.
Under the proposed deal, WPP would pool its Chinese agency operations into a new holding company and the consortium comprising ?Alibaba, Tencent and CMC with roughly equal shareholdings would buy a 20% stake in the new company, with WPP Group retaining 80% ownership and control, sources informed Sky News.
London listed shares in WPP were up 2.1% at 1,178.50 pence each on Monday morning.
https://news.sky.com/story/wpp-courts-chinese-tech-giants-alibaba-and-tencent-over-25bn-deal-11444327
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