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

 


 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
DISUAVRROWUUUUA