This archive report was first published on 1 November 2019.
On November 1, 2019, WPP Scangroup directors approved the sale of 100% of its shareholding in Millward Brown's Nigeria, West Africa, and East African business, as part of WPP PLC's new strategy to sell the Global Kantar Group to Bain Capital Group.
Kantar TNS operates in Nigeria and Kenya, the primary markets for WPP Scangroup, and also conducts activities in other countries including Senegal, Cameroon, Cote d'Ivoire, and Ghana.
WPP Scangroup will sell its shareholding in Research and Marketing Group Investment Limited, with shares amounting to 80% of the total ownership.
The sale of Millward Brown Companies and RMGIL is expected to generate approximately KSh 5 billion, after costs and taxes, which will be used to pump proceeds into expansion and capital needs.
Furthermore, 40% of the proceeds will be paid out as a special dividend to shareholders.
Reuben Mwangi announced, 'The sale will realize approximately KSh 5 billion after estimated tax and costs. The consideration has been arrived at under a global competitive auction process carried out by WPP Plc.'
However, the transaction is not complete as it awaits the finalization and execution of the sale agreement, shareholder and regulatory approval, and the finalizing of the Global transaction.
The company has urged shareholders to exercise caution when trading its shares due to the ongoing transaction.
