Omnicom is moving to acquire the shares in Clemenger that it doesn’t already own, ahead of its global takeover of competitor IPG.
Omnicom, which took a majority stake in Clemenger in 2010, wants to take the outstanding 13.165% owned by directors and staff at Clemenger Group.
The proposal goes to a vote of shareholders June 30, according to The Australian.
Omnicom has declined to comment. No official comment from Clemenger.
Clemenger reported commissions and fees of $301.89 million for the year to December 2024, according to documents lodged with corporate regulator ASIC. Net profit was $44.33 million.
Last year Clemenger declared 12.75 cents a share in dividends, a total of $22,376,250.
In February this year, directors recommended a dividend of 11.25 cents a share, a total of $19,743,750.
Local staff and directors would have shared $2.9 million last year and almost $2.6 million this year.
The buyout price offered by Omnicom isn't known but would have to be high enough to take into account the regular dividends paid to staff.
Robert Morgan, the retiring chairman, would be one of the big winners.
The number of employees at the end of 2024 was 1,496, down from 1,712 the year before.
Omnicom, working toward finalising the acquisition of IPG later this year, is developing plans for integrating its businesses.
The group has already merged BBDO, CHEP Network and Traffik under the leadership of Lee Leggett.
Nick Garrett, a former CEO of Clemenger BBDO, is a leading contender to run the combined Omnicom-IPG local structure post the takeover.
The global advertising group is aligning agencies in areas of strength where IPG's business units will also sit when the takeover closes.
The deal, valued about AUD $19.875 billion, would see Omnicom acquire IPG in an all-stock transaction.
The marriage of rivals brings together the third biggest advertising group, Omnicom, with the fourth, IPG, to form a company with 100,000 people and revenue of $25.6 billion (net revenue of $20 billion), with 57% of that in the US.
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