WPP is in exclusive talks with global private equity firm Bain Capital for the sale of a majority stake in its data management arm Kantar.
The advertising holding company's unit has a headline enterprise value of about $US4 billion.
"Bain Capital’s proposal is subject to negotiation," says WPP in a statement. "There is no certainty that these discussions will result in a transaction involving Kantar.
In its latest earnings report, WPP said the sale of Kantar was on track, with interest from “high-quality” potential buyers. These were reported to include Platinum Equity, Vista Equity and Apollo Global Management.
WPP AUNZ owns the Kantar business in Australia and New Zealand.
WPP plc, the majority shareholder of WPP AUNZ, had previously announced its intention to develop the global Kantar business through a strategic or financial partner, with the UK-based company retaining a significant minority interest and strategic links.
WPP AUNZ is keeping its options open on Kantar and is in "discussions with WPP plc to sell all of its equity interests in the Kantar business in Australia and New Zealand, should a global transaction occur".
The Australian ASX-listed entity February posted a statutory loss of $17.1 million for 2018 on top of impairments and a hit to revenue from its Advertising, Media Investment Management segment. The statutory loss was a 123% fall from the $73.3 million profit result in 2017.
Numbers presented to the company's AGM in Sydney in May show a flat outlook for full year underlying earnings per share compared to the previous 12 months.
WPP AUNZ, like the rest of the ad sector, is feeling the impact of weak media expenditure in the market generally.
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