Omar Oakes
Jul 1, 2019

WPP confirms sale of stake in VCCP and CSM owner Chime

Sale comes four years after WPP and Providence Equity bought agency group for US$473 million.

WPP confirms sale of stake in VCCP and CSM owner Chime

WPP is selling its minority shareholding in Chime, the parent company of VCCP and CSM Sport & Entertainment.

The holding group announced this morning that it will sell its 24.85% stake to US private-equity company Providence Equity for US$68.8 million.

WPP would also receive "potential additional amounts based on the future value of Chime", the company said in a statement to the London Stock Exchange.

"The disposal is in line with WPP’s new strategy as set out in December 2018, a key element of which is to focus on its main areas of business and simplify its operations through the disposal of non-core assets," the statement added.

Lindsay Pattison, WPP’s chief transformation officer, represents the company as a director on the board of Chime.

The sale comes four years after WPP and Providence bought Chime for US$473 million. Chime was founded by Lord Bell, Margaret Thatcher’s former media advisor. WPP had already owned an 18% stake in Chime before the deal.

Chime, which acquired VCCP in 2005, increased its revenue by 14% in 2017 to $354 million, according to its most recent financial disclosure, with a pre-tax profit of US$27.3 million (down 1.4% year on year).

 

Source:
Campaign UK

Related Articles

Just Published

4 hours ago

Why your ad next to trendy pimple-popping, mukbang, ...

A new report from Channel Factory and Magna shows that while consumers are entertained by misguided ads, advertisers will not be amused by the results of content-ad misalignment.

5 hours ago

GrabFood versus GoFood: The rivalry only escalates ...

Deep discounts and promotions are keeping competition delivered hot and fresh via apps touting ever-more convenience and integrations.

6 hours ago

Expectant humans and animals get a say in Hyundai film

The carmaker uses maternal humans and wildlife to communicate a message about its commitment to mother earth.

8 hours ago

Stephen Li departs as OMD APAC CEO

Li is on gardening leave until November and a search for a replacement is underway.