LONDON: Aegis, the London-based media group, has offered to buy the Mitchell Communication Group in a deal worth $363 million.
Shares in Mitchell Communication Group were placed in a trading halt this morning on the Australian Securities Exchange ahead of an announcement at lunch time.
It is understood that a shares and cash offer will see the Mitchell family become the second biggest shareholder in Aegis Worldwide.
Mitchell is expected to stay on as executive chairman of the expanded group, and Stuart Mitchell will return as chief executive in August.
Aegis chief executive, Jerry Buhlmann, plans to announce the acquisition of Mitchell Communication Group in the next 48 hours.
Aegis is attempting to gain exposure to the fast-growing Asian market, where its rival WPP already has a strong foot print.
Aegis wants to combine Mitchell’s domestic clients in Australia with Aegis’s international network, and the pull of Mitchell's strength in digital is particularly appealing to Aegis, which owns the biggest digital advertising agency network in the UK.
For more see this week's AdNews 30 July 2010.
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