Credit: Efem Yagiz Soysal Vvia Unsplash
M+C Saatchi, with revenue sliding in a tough market, has rejected an offer from marketing and advertising technology firm Brave Bison to buy its performance division.
The offer was £50 million for the global advertising group’s digital media planning and buying unit, a key part of the company’s growth plans.
M+C’s media business grew 5.4% in the half year to June on the back of “good progress” in North America.
However, overall the company is in negative territory. M+C Saatchi reported like-for-like net revenue down 5.1% to £103.8 million for the half year to June. Operating profit fell 36% to GBP 10.3 million.
M+C Saatchi singled out Australia as a poor performer. The company, given continuing macro headwinds as well as the "significant drag of the Australian business," expects full year revenue to slide by about mid-single digits and profit to be flat on last year.
The company, in a note to the London Stock Exchange, confirmed it received an unsolicited approach from Brave Bison.
“The offer fundamentally undervalues the division and does not reflect the future prospects for the division which forms a core element of the company's growth plans,” M+C Saatchi’s board of directors said in a statement.
“As such no discussions are ongoing.
“The board remains focused on delivering value for the company's shareholders."
Sky News at the weekend quoted city sources that Brave Bison, run by brothers Oli and Theo Green, has tabled a cash-and-stock proposal to acquire M&C Performance.
Shares in Brave Bison, which is backed by investors Rupert Murdoch and former Conservative Party deputy treasurer Lord Ashcroft, have almost doubled in the year to date, while M&C Saatchi's has fallen by 22%, Sky said.
In June Brave Bison bought Mark Ritson’s MiniMBA for £19 million (AUD40 million).
Last year it bought social media and influencer agency, SocialChain.
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