WPP PLC Ups Offer To 70 Cents A Share In Bid To Acquire WPP AUNZ

WPP PLC Ups Offer To 70 Cents A Share In Bid To Acquire WPP AUNZ
SHARE
THIS



WPP PLC has upped its offer to acquire the rest of its Australian operations revealing today that it was offering shareholders $0.70 cents a share.

Yesterday, WPP AUNZ shares went into a trading halt on anticipation of today’s news.

WPP PLC already owns 61.5 per cent of the local operations, however, in late November it announced plans to acquire the business in full, offering shareholders, at the time, $A0.55 a share.

Subsequent to further discussions with WPP PLC, the Independent Board Committee (“IBC”) advised that it has received a revised proposal from WPP plc to acquire all of the ordinary shares in WPP AUNZ that it does not already own at a price of A$0.70 per share in cash.

The Revised Proposal of A$0.70 per share values WPP AUNZ at an implied enterprise value of A$717 million and compares to the undisturbed share price of A$0.41 per share.

The IBC has determined that it is in the best interests of WPP AUNZ minority shareholders to seek to enter into a binding scheme implementation agreement in relation to the Revised Proposal and to convene a scheme meeting and recommend the Revised Proposal to shareholders, subject to an independent expert affirming that the transaction is in the best interests of minority shareholders and in the absence of any superior proposal being received. This determination has considered, amongst other things, the trading outlook statement for FY20 and FY21 provided to the market today and other fundamental valuation considerations.

The Revised Proposal price of A$0.70 per share will be reduced by the cash amount per share of any ordinary dividend or special dividend declared prior to the completion of the transaction. As referenced in the FY20 and FY21 outlook statement released to the market today, the WPP AUNZ Board expects to return to paying dividends in the 2021 year, commencing with the expectation of a dividend to be declared in conjunction with the FY20 results in late February 2021.

WPP PLC has agreed to WPP AUNZ declaring and paying total ordinary and special dividends of up to A$0.15 per share prior to completion – subject to WPP AUNZ board determination, tax and accounting considerations, an ATO ruling and bank consent. Total dividends up to A$0.15 per share comprised of a mix of ordinary and special dividends would have the effect of delivering shareholders up to A$0.06 per share of additional value beyond the cash value of the dividend depending on their ability to utilise any franking credits attaching to these dividends. There is no certainty that these dividends will be declared and paid, and declaration will be subject to further tax advice and the outlook at the time of declaring dividends.

The Revised Proposal is non-binding, and therefore WPP AUNZ shareholders do not need to take any action in relation to the Revised Proposal at this time.

While the IBC have agreed to negotiate in good faith an Implementation Agreement with respect to the Revised Proposal, there is no guarantee that an Implementation Agreement will be entered into. Furthermore, there is no guarantee firstly that an independent expert will conclude that the proposal is in the best interest of minority shareholders, and secondly, that the required 75 per cent of minority shareholders will vote in favour of the proposal for the scheme to be approved. Subject to entering into an Implementation Agreement, it is contemplated that the proposal would be put to WPP AUNZ shareholders at a scheme meeting to be held in the first half of 2021. The IBC will continue to update shareholders as required under its continuous disclosure obligations.

WPP AUNZ has appointed UBS AG, Australia Branch as its financial adviser and Herbert Smith Freehills as its legal adviser.

Please login with linkedin to comment

WPP AUNZ

Latest News

Acast Adds New Brand Suitability Controls For Advertisers Via Comscore
  • Advertising
  • Media

Acast Adds New Brand Suitability Controls For Advertisers Via Comscore

Acast, the independent power source of podcasting has teamed up with Comscore to provide brand suitability controls for brands advertising through the Acast Marketplace. This new innovation is part of a global partnership with Comscore, and will be available to all advertisers working with Acast Australia and New Zealand. The brand suitability solutions offered by […]

Wavemaker Names Susie Si As New Vodafone Lead
  • Media

Wavemaker Names Susie Si As New Vodafone Lead

Media agency Wavemaker has appointed Susie Si as group business director – to lead the Vodafone account. Si joins from sister agency MediaCom, where she has spent the last 8 years. Most recently she was group client lead on News Corp. Si will report to Wavemaker Sydney managing director Ian Edwards, and replaces Emily Cook […]

Trade Indy Opens Sydney Office With Appointment Of NSW Commercial Director Ben Mulcahy
  • Marketing

Trade Indy Opens Sydney Office With Appointment Of NSW Commercial Director Ben Mulcahy

Headquartered in Melbourne, Trade Indy is expanding off the back of strong client retention and consistent growth through existing and new business. Founded in Melbourne in 2014, the team have since expanded the business through team members in Singapore, Indonesia, Tasmania and Queensland, and are pleased to announce the full-time employment of NSW commercial director […]

Outbrain Goes Public, Making Nasdaq Debut
  • Marketing

Outbrain Goes Public, Making Nasdaq Debut

Outbrain Inc. has announced the pricing of its initial public offering of 8,000,000 shares of common stock at a price to the public of US$20.00 per share. The gross proceeds to Outbrain from the offering, before deducting the underwriting discounts and commissions and offering expenses, are expected to be approximately $160 million. The shares began […]

HubSpot To Support The GO Foundation As Part Of World Certification Week
  • Technology

HubSpot To Support The GO Foundation As Part Of World Certification Week

HubSpot, the customer relationship management (CRM) platform for scaling companies, has announced that as part of its World Certification Week, it is supporting the GO Foundation with its mission to empower young Aboriginal and Torres Strait Islander people through education. As part of the support, HubSpot will donate $5 for every HubSpot Academy certification awarded […]

IntelligenceBank Secures $50M Investment From Five Elms Capital
  • Technology

IntelligenceBank Secures $50M Investment From Five Elms Capital

IntelligenceBank has today announced a strategic growth investment from Five Elms Capital. The $US37 million ($50 million) investment comes as brands and enterprises have realised that outdated technologies, disjointed data sources, and manual processes make it challenging to efficiently manage essential marketing workflows and ensure compliance across the organization. IntelligenceBank digitally transforms manual processes and […]

SCA Announces Ten New Dab Music Stations Via LiSTNR
  • Media

SCA Announces Ten New Dab Music Stations Via LiSTNR

Southern Cross Austero (SCA) announced today 10 all-new DAB+ music stations on LiSTNr. The introduction of the 10 new Dab stations takes the number of music stations to 25 and reinforces its commitment to growing exclusive music programs and content. The 10 new stations have been created to cater to a variety of moods and […]

SBS Launches Live Interpreting Of Daily NSW COVID-19 Conferences In Vietnamese And Arabic
  • Media

SBS Launches Live Interpreting Of Daily NSW COVID-19 Conferences In Vietnamese And Arabic

SBS has launched live interpreting of the daily NSW Government COVID-19 press conference in languages other than English, to provide communities with access to the latest information and critical health messages. The national-first initiative provides real-time interpreting of the press conferences in Arabic and Vietnamese, streamed live every day on the SBS Arabic24 and SBS Vietnamese Facebook pages, SBS […]

Linktree Chooses Snowflake To Support Intelligence And Analytics Activities
  • Technology

Linktree Chooses Snowflake To Support Intelligence And Analytics Activities

Snowflake, the Data Cloud company, today announced it has been chosen by market-leading linking platform, Linktree, to support the company’s business intelligence and analytics activities. Linktree enables creators, brands, artists, publishers, agencies, and businesses of all sizes to curate an online ecosystem and monetise their passion, instantly guiding their audience to the destinations they care […]

London, UK - August 01, 2018: The buttons of Snapchat, Facebook, Instagram and WhatsApp on the screen of an iPhone.
  • Media

Snapchat Sees 116% Increase In Revenue

The last time B&T saw impressive increases the size of 116% was the swipe left rejections on our Tinder profile.

by B&T Magazine

B&T Magazine
Woman hand using modern laptop computer to connect with live streaming video on social network
  • Technology

Xandr Sees 125% Lift In Video Spend

Xandr, AT&T’s data-enabled technology platform at the intersection of digital and TV, today shared results of premium video, Connected TV (CTV) and curated media spend on its platform for Q2 2021, which saw significant increases.

Taboola Acquires Connexity For $1 Billion
  • Technology

Taboola Acquires Connexity For $1 Billion

Taboola (Nasdaq: TBLA), a global leader in powering recommendations for the open web, helping people discover things they may like, announced today that it has entered into a definitive purchase agreement to acquire Connexity from Symphony Technology Group for approximately $US800 million. Connexity is one of the largest independent e-commerce media platforms in the open web, serving over 1,600 direct merchants, and 6,000 publishers.

How To Re-Engineer Your Event Mix With ON24
  • Partner Content

How To Re-Engineer Your Event Mix With ON24

Events are increasingly shifting online. You can't get loaded on booze & arancinis, but you'll save on dry cleaning

by B&T Magazine

B&T Magazine
Twitter Lifts Revenue 74% On The Back Of Advertising Boom
  • Technology

Twitter Lifts Revenue 74% On The Back Of Advertising Boom

Twitter has just experienced its fastest growth in revenue since 2014, with the social media platform benefiting from increased interest from advertisers. Revenue was up 74 per cent YoY, according to the company’s Q2 results, reaching $US1.19 billion ($1.6 billion) from $US683.4 million ($925 million) 12 months ago. The strong results came in the same […]

by B&T Magazine

B&T Magazine