Divestment of subsidiaries
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.
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M&C Saatchi plc |
+44 (0)20-7543-4500 |
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Zillah Byng-Thorne, Executive Chair Bruce Marson, Chief Financial Officer |
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Deutsche Numis |
+44 (0)20-7260-1000 |
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Nick Westlake, Iqra Amin |
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Liberum, NOMAD |
+44 (0)20-3100-2000 |
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Max Jones, Benjamin Cryer, Will King
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