WPP submits proposal to acquire remaining shares in WPP AUNZ
WPP has submitted a proposal to the Board of WPP AUNZ Limited (“WPP AUNZ”) to pursue an acquisition of the remaining shares in WPP AUNZ. WPP currently holds a stake of approximately 61.5% of the share capital of WPP AUNZ, which is listed on the Australian Securities Exchange (ASX:WPP). The proposed acquisition is in line with WPP’s global strategy of simplifying its structure and will move WPP to 100% ownership and control of its Australian and New Zealand operations.
The proposal made by WPP, of A$0.55 per share in cash, represents a premium of approximately 34.1% to the closing price of WPP AUNZ on 27 November 2020. The total aggregate consideration payable by WPP for the remaining shares would be approximately A$181m. The proposal has not yet been put to WPP AUNZ shareholders and there is no certainty that the acquisition will complete. The proposal is subject to customary conditions (including regulatory approvals) and, if implemented, is expected to be completed in 2021.