LONDON, UK: AdvancedAdvT Limited (ADV) has made an offer to acquire share capital of M&C Saatchi plc (Which it doesn’t already own), whereas M&C Saatchi shareholders have the option to take 2.53 ADV shares or 2.043 ADV shares plus 40 pence for every M&C share.
Both the Cash and Shares Offer and the All Share Offer value each share of M&C Saatchi at 207.5 pence and the total issued share capital of M&C Saatchi at £253.6 million, based on the closing share price of ADV of 82.0 pence on 16 May 2022 (being the Business Day prior to the date of this announcement).
Vin Murria, Chair of AdvancedAdvT Limited (ADV), said: “Having sought the recommendation of the M&C Saatchi Independent Directors since early January, to date that has not been forthcoming. With today’s announcement we are seeking the support of M&C Saatchi Shareholders in addition to those shareholders holding 20.2% of the M&C Shares who have already indicated their support. Together, ADV and I already own 22.3% of the M&C Saatchi Shares.
We are delighted that Christopher Sweetland, who was Deputy Group Finance Director of WPP Group and Tamara Ingram, who was CEO and Chair of Saatchi and Saatchi UK as well as the global CEO of J Walter Thompson Worldwide and Paul Gibson, who was Chief Operating Officer of Advanced Computer Software, will join the Enlarged Group as non-executive directors.
The combination of M&C Saatchi’s existing global brand, culture and foundation with ADV’s investment capital, experience and proposed new directors provide a tremendous opportunity to accelerate M&C Saatchi’s digital growth strategy, organically and by acquisition.
The people are the heartbeat of the business. In working alongside them, we believe we will create a business that will benefit employees, clients, and shareholders by capitalising on the growth opportunities presented by the structural changes in M&C Saatchi’s markets arising from a rapid acceleration of digitalisation, analytics and data creation.
The enlarged business will have also significantly broadened its access to additional institutional equity. This will enable an acceleration of future investment and accretive M&A to further enhance the appeal of the M&C Saatchi foundation and attract many more quality assets.”
Talent and Retention
AdvancedAdvT Limited (ADV) plans to build on M&C Saatchi’s existing brand, culture and global foundations, and proposes that with better access to investment capital it can build a data, analytics and digitally focussed creative marketing business attracting the best clients and the best talent in the industry, delivering work that has meaningful impact and value for its clients and the larger community.
The Enlarged Group will be able to offer a more diverse range of capabilities and services enhancing the employee value proposition; and delivering variety, challenge, opportunities for creative thought and a problem-solving environment for employees and clients to collaborate, helping retain and attract the best talent.
The ADV LTIP aligns the reward of senior management with the creation of shareholder value and return, and reflects the high competition for the best executive management.
ADV accelerates the M&C Saatchi strategy
ADV’s proposal is consistent with the strategy set out in M&C Saatchi’s FY21 Annual Report which focuses on digital acceleration, group simplification and greater collaboration, but with a view to accelerating the significant growth prospects of M&C Saatchi.
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