This archive report was first published on 1 August 2019.
On July 31, WPP Scangroup announced that it would be letting go of its research business, with a US-based private equity firm, Bain Capital, set to acquire the arm.
The deal marks a significant shift for the company, which had acquired Kantar TNS just a year prior, in a bid to align the two market research businesses and enhance service for clients.
WPP Scangroup's stake in Kantar includes an 80% shareholding in Kantar TNS and a 100% shareholding in Kantar Millward Brown.
According to company secretary Reuben Mwangi, WPP Plc, Scangroup's majority shareholder, has entered into an agreement to sell 60% of its shareholding in Kantar.
The sale is subject to pending approvals and concluding discussions with shareholders, with Scangroup advising its current shareholders to be cautious in dealing with its shares on the market.
Completion of the deal is expected to result in a material change in the company's control of Kantar's business in Africa.
As part of the deal, Bain Capital will acquire a significant stake in Kantar, adding to the variety of investments owned by the Boston-based private equity firm.
