REG - M&C Saatchi PLC - Divestment of South Africa Group subsidiaries

M&C SaatchiAnnouncement

09/04/2024 16:30

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RNS Number : 9107J  M&C Saatchi PLC  09 April 2024

9 April 2024

M&C SAATCHI PLC

(the "Company" or "M&C Saatchi")

Divestment of M&C Saatchi South Africa Group subsidiaries

M&C Saatchi today announces the divestment of its shares in the M&C
Saatchi South Africa Group, comprising of M&C Saatchi Abel, Connect,
Levergy, Razor, Dalmatian and Black & White (together the "M&C Saatchi
South Africa Group"). M&C Saatchi's shares in the M&C Saatchi South
Africa Group are being acquired by the existing local leadership teams which
includes the directors and current minority owners of the M&C Saatchi
South Africa Group.

This divestment of the M&C Saatchi South Africa Group is in line M&C
Saatchi's strategy to simplify its operating structure while retaining its
valued affiliation with this South African group of agencies.

The cash consideration for the shares of the M&C Saatchi South Africa
Group is £5.6 million. The proceeds of the disposal will be retained by
M&C Saatchi.  In the year ended 31 December 2023, the M&C Saatchi
South Africa Group generated a consolidated profit after tax of £1.3 million
(£0.7 million excluding minority interests).

Zillah Byng-Thorne, Executive Chair of M&C Saatchi, said: "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.  We look forward to
further collaboration in the region and expanding our offering and services to
our clients."

Related party transaction

The divestment of shares in the M&C Saatchi South Africa Group is
considered to be a related party transaction for the purposes of AIM Rule 13
of the AIM Rules for Companies due to the acquisition of the Company's
interest being made by directors of the M&C Saatchi South Africa Group.
For the purposes of the AIM Rules for Companies, the directors of M&C
Saatchi, having consulted with the Company's Nominated Adviser, Liberum
Capital Limited, consider the terms of this divestment to be fair and
reasonable so far as its shareholders are concerned.

 

FURTHER INFORMATION

 

 M&C Saatchi plc                             +44 (0)20-7543-4500
 Zillah Byng-Thorne, Executive Chair

 Bruce Marson, Chief Financial Officer

 Jill Sherratt, Head of Investor Relations

 Liberum, NOMAD and joint broker                           +44 (0)20-3100-2000
 Max Jones, Edd Mansfield, Will King

 Deutsche Numis, joint broker                +44 (0)20-7260-1000
 Nick Westlake, Iqra Amin

 Headland Consultancy                        +44 (0)20-3805-4822
 Charlie Twigg

 

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