M&C Saatchi PLC
04 May 2007
M&C Saatchi PLC
4 May 2007
M&C SAATCHI PLC
('M&C Saatchi' or the 'Company')
M&C Saatchi to acquire Christine Walker's stake in Walker Media Holdings Limited
M&C Saatchi plc is pleased to announce that it has agreed to acquire all of the
issued ordinary shares held by Christine Walker in Walker Media Holdings Limited
('Walker Media').
Walker Media is a media planning and buying company that Christine Walker
founded with Phil Georgiadis and M&C Saatchi in 1997. Walker Media is the eighth
largest media agency in the UK, with annual billings in excess of £300 million.
As at today's date, M&C Saatchi owns 75% of the shares in Walker Media.
Christine Walker is currently the chairman of Walker Media, but has resigned
from such position and as a director of Walker Media group companies with effect
from 30 June 2007. As a result of her current position, the acquisition of the
shares held by Christine Walker in Walker Media ('Christine Walker's Shares')
now being announced is a related party transaction under the AIM Rules.
Christine Walker's Shares represent approximately 14% of the issued share
capital of Walker Media. As consideration for the acquisition of Christine
Walker's Shares, Christine Walker will receive an amount per share based on a
valuation of the Walker Media group equal to 15.7 times the consolidated profit
for the Walker Media group (after tax, interest, depreciation and amortisation)
for the financial year ending 31 December 2007. This will be satisfied by the
issue of shares in M&C Saatchi to the value of £2,154,040, with the remainder to
be satisfied by cash.
This transaction is scheduled to complete on 2 July 2007. M&C Saatchi have
agreed to make a cash payment by way of initial consideration on such date equal
to £6,289,797. This will be subject to an adjustment payment in cash by either
M&C Saatchi or Christine Walker (as applicable) following the determination of
the consolidated profit for the Walker Media group for the financial year ending
31 December 2007.
M&C Saatchi's directors, having consulted with Numis Securities Limited,
consider the terms of the transaction to be fair and reasonable insofar as M&C
Saatchi's shareholders are concerned.
For further information:
M&C Saatchi plc 020 7543 4500
David Kershaw, Chief Executive
Tulchan Communications 020 7353 4200
Celia Gordon Shute
Notes
Walker Media started trading in January 1998 as a 50:50 joint venture with M&C
Saatchi. In July 2004 M&C Saatchi acquired a further 25% of Walker Media's
shares when the Company was launched on the London AIM market.
This information is provided by RNS
The company news service from the London Stock Exchange
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