WPP AUNZ expects $150 million from the Kantar sale

Chris Pash
By Chris Pash | 15 July 2019
 

ASX-listed WPP AUNZ expects to realise about $150 million as its share of the global sale of 60% of data, research, consulting and analytics business Kantar to private equity giant Bain.

The global holding company, WPP plc, WPP AUNZ’s majority shareholder, is selling 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, previously said it intended to explore strategic options for Kantar.

The Australian arm now says it is in advanced talks with WPP plc to sell 100% of its Kantar business in Australia and New Zealand on financial and commercial terms in-line with the WPP plc global transaction.

“If a transaction is finalised WPP AUNZ expects net proceeds after transaction costs and completion adjustments to be in the order of $150 million,” the local company says.

This could put a large dent in WPP AUNZ’s net debt which stood at $270.3 million at the end of December. However, the company has not said what it would use the Kantar cash for.

Kantar made a significant contribution to WPP AUNZ’s total sales of $857.3 million for the year to December.

The company’s Data Investment Management segment contributed net sales of $105 million and earnings before interest and tax of $20 million for the 12 months. The Kantar businesses accounts for the significant majority of that segment.

Jon Foged heads up Kantar in Australia. 

WPP AUNZ shares have risen by more than a third over the last few weeks as news broke of a possible sale of Kantar. Its shares closed Friday at $0.585, up more than 4% on the day.

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