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Chime Communications agrees to sell to WPP and Providence for $582 million
(AP Photo/Nati Harnik) WPP CEO Sir Martin Sorrell.
Chime has reached an agreement that will see Providence and WPP acquire it outright following a unanimous vote by its independent directors to accept the £374 million deal.
The deal, talks over which were reported yesterday, will see shareholders become entitled to 265 pence for each share of Chime, as well as an interim dividend of £2.53 per share based on the closing share price of 29 July.
Lord Davies of Abersoch, chairman of Chime, said: “Chime has achieved great success to date in building a leading position in the global sports marketing and communications industry, which is reflected in the attractive premium being offered to shareholders. However, to fulfill Chime’s considerable growth potential, significant new capital is required. Providence and WPP offer Chime both the capital and the industry expertise to fast-track our ambitions to build a full scale, global sports marketing and communications business. Taking this into account, Chime’s independent directors unanimously recommend that shareholders vote in favour of the resolutions at the general meeting and in favour of the scheme at the court meeting.”
Leading the buyout through a newly established company, Bidco, Andrew Tisdale, said: “Chime’s history is one of innovation, creativity and consistent delivery of superior results for its clients. We believe Chime’s true assets are its people, and are excited to have the opportunity to partner with them as we embark on the next phase of the company’s growth.”
Providence will manage the funds that control Bidco while WPP will acquire an indirect minority interest in the company on in exchange for transferring its Chime shares to Bidco's parent company.
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