WPP AUNZ has closed a deal to sell data business Kantar in Australia and New Zealand.
The global holding company, WPP plc, WPP AUNZ’s majority shareholder, decided last month to sell a majority stake in Kantar to Bain Capital Private Equity for GBP2.5 billion (AUD4.48 billion).
WPP AUNZ, which owns the Australian business of Kantar, then started negotiations to sell its part of Kantar.
The transaction, to be completed early in 2020, values the local Kantar business at $168 million.
Proceeds to WPP AUNZ, after transaction costs and provision for restructure liabilities to the value of $8.4million, are expected to be about $150 million, payable in cash
The company says the cash will enable it to take "advantage of opportunities" in line with the strategic plan to be developed by incoming CEO Jens Monsees who starts in October.
John Steedman, Interim CEO of WPP AUNZ, says the sale proceeds will enable greater investment in the existing portfolio of companies to accelerate their growth potential and to invest in new offerings and technologies.
"We expect to retain a close relationship with Kantar and work together, as we do now, to create better integrated solutions for our clients, particularly as our major shareholder, WPP plc, will continue to own 40% of the global Kantar business," he says.
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