WPP: sells 60% in Kantar to Bain Capital
(CercleFinance.com) - British advertising giant WPP has announced the sale of a 60% stake in its market research unit Kantar to US private equity firm Bain Capital for about 4 billion dollars (3.
2 billion pounds).
The deal will create a "strong partnership" to accelerate the development of Kantar, with WPP seeing "potential value upside" from its remaining 40% equity stake in the business.
"The fact that the deal looks pretty much in line with what was thought and has been announced in line with the company's previous announcement, should provide confidence to the market," said analysts at Liberum, who have a "buy" rating on the shares.
Earlier this month WPP said it had entered into exclusive discussions with Bain Capital to sell a majority stake in Kantar.
WPP said it plans to use the proceeds of the deal to reduce its debt.
The London-listed shares of WPP were little changed after this announcement, gaining just 0.5%
Copyright (c) 2019 CercleFinance.com. All rights reserved.
2 billion pounds).
The deal will create a "strong partnership" to accelerate the development of Kantar, with WPP seeing "potential value upside" from its remaining 40% equity stake in the business.
"The fact that the deal looks pretty much in line with what was thought and has been announced in line with the company's previous announcement, should provide confidence to the market," said analysts at Liberum, who have a "buy" rating on the shares.
Earlier this month WPP said it had entered into exclusive discussions with Bain Capital to sell a majority stake in Kantar.
WPP said it plans to use the proceeds of the deal to reduce its debt.
The London-listed shares of WPP were little changed after this announcement, gaining just 0.5%
Copyright (c) 2019 CercleFinance.com. All rights reserved.