REG - M&C Saatchi PLC - Divestment of subsidiaries

M&C SaatchiAnnouncement

22/12/2023 07:00

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RNS Number : 6961X  M&C Saatchi PLC  22 December 2023

22 December 2023

M&C SAATCHI PLC

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

Divestment of subsidiaries

 

The Company announces the divestment of certain overseas subsidiaries in line
with its strategy to simplify its operating structure and improve efficiency
across the group. M&C Saatchi AB ("M&C Saatchi Sweden") and M&C
Saatchi Spencer Hong Kong Limited ("M&C Saatchi Spencer") predominately
form part of the Company's Advertising division and are being acquired by the
existing local leadership teams. The Company is also in negotiations regarding
the divestment of M&C Saatchi Holdings Asia Pte. Limited.

The Company has agreed to dispose of its entire shareholding in M&C
Saatchi Spencer for nil consideration and has reduced its interest in M&C
Saatchi Sweden from 70 per cent. to 30 per cent. with the management team,
including Max Bon de Veire, Linda Elers and Daniel Sundin, directors of
M&C Saatchi Sweden, acquiring the Company's interest for nominal
consideration.

In the year ended 31 December 2022, M&C Saatchi Sweden generated a loss
before tax of £360k and is expected to be loss making in the year ending 31
December 2023. M&C Saatchi Spencer is also expected to be loss making in
the year ending 31 December 2023.

Neither M&C Saatchi Sweden nor M&C Saatchi Spencer are considered to
be core to the future strategy of the group.

Related party transaction

The divestment of M&C Saatchi Sweden 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 in M&C Saatchi Sweden being
made by directors of M&C Saatchi Sweden. 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.

 

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

 Bruce Marson, Chief Financial Officer
 Deutsche Numis                                         +44 (0)20-7260-1000
 Nick Westlake, Iqra Amin
 Liberum, NOMAD                                        +44 (0)20-3100-2000
 Max Jones, Benjamin Cryer, Will King

 

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