Shares in advertising group WPP AUNZ have been suspended from the ASX.
The move, announced by the stock echange, is part of the company's disappearing act caused by the takeover by global parent WPP plc, based in the UK.
WPP plc, the world's biggest advertising company, is paying $230 million to buy the 38.5% of the Australian company it doesn't own.
The suspension of shares follows Supreme Court of New South Wales approval of the 70 cents a share takeover.
The ASX: "The securities of WPP AUNZ Ltd (‘WPP’) will be suspended from quotation at the close of trading today, Monday, 26 April 2021."
WPP AUNZ's activitiies will now be less visible. As an ASX-listed company, WPP AUNZ had to report publicly its financials, at least half yearly and annually.
With the takeover, the Australian arm of WPP becomes a unit in a bigger whole and, judging by other holding companies, the local operations may get the briefest of mentions during earnings updates.
The local stock exchange listing goes back to 2016 when Australian based WPP businesses were effectively backed into the ASX by taking over STW Communications.
This created the largest communications services parent company in the region with 90 plus businesses and more than 5,500 people (and now about 4,000).
Revenues then were a combined $850 million but have slipped since.
Last year WPP AUNZ had net sales of $612 million, down 14% but better than the total ad market which was down 15%. Headline earnings before interest and tax came in at $61.9 million, down 32.6%.
But the UK company is buying at a time of uplift.
Local CEO Jens Monsees is upbeat on the net sales outlook, with “good momentum” in recent client engagement, in a company which is already seeing the benefits of his transformation program.
His net sales target for 2021 is for growth of 3%-6%.
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