NEW YORK, June 26, 2020 /PRNewswire/ -- MDC Partners Inc.
(the "Company") (NASDAQ: MDCA) today announced that its Board
of Directors has formed a special committee of independent
directors to review the preliminary, non-binding proposal made by
Stagwell Media LP ("Stagwell") with respect to a potential business
combination between the Company and Stagwell (the "Potential
Transaction"). Mark Penn, Chairman
and Chief Executive Officer of the Company, is also the managing
partner of Stagwell. The special committee has not reached any
conclusion as to the advisability or feasibility of a Potential
Transaction.
The special committee intends to retain legal counsel and an
independent financial advisor to assist in its review and
evaluation of the Potential Transaction.
"The special committee will act in the best interests of the
Company and our shareholders and will evaluate the proposed
transaction in partnership with our independent advisors," said
Irwin Simon, Lead Independent
Director of the Company. "We are committed to maximizing
shareholder value and, if it makes sense to proceed, we will do so
in a thoughtful and diligent manner."
The special committee has the full power and authority of the
Board of Directors to take any and all actions on behalf of the
Board of Directors as it deems necessary in order to evaluate and
negotiate a Potential Transaction, including any alternatives to
any transaction which may be proposed by Stagwell, and the special
committee has the full power and authority to reject any Potential
Transaction.
No assurances can be given regarding the likelihood, terms and
details of any proposal or Potential Transaction, that any proposal
made by Stagwell regarding a Potential Transaction will be accepted
by the special committee, that definitive documentation relating to
any such Potential Transaction will be executed or that any
Potential Transaction will be completed.
Forward Looking Statements
Certain statements in this announcement, including statements
regarding a Potential Transaction, are "forward-looking statements"
that are subject to risks and uncertainties. These risks and
uncertainties include, but are not limited to, the impact of the
announcement of the formation of the special committee and review
of a Potential Transaction on the Company's business, whether any
Potential Transaction will occur, and/or the ability to implement
any Potential Transaction or other transaction. A number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement, including
the risks identified in our filings with the U.S. Securities and
Exchange Commission.
About MDC Partners Inc.
MDC Partners is one of the most influential marketing and
communications networks in the world. As "The Place Where Great
Talent Lives," MDC Partners is celebrated for its innovative
advertising, public relations, branding, digital, social and event
marketing agency partners, which are responsible for some of the
most memorable and effective campaigns for the world's most
respected brands. By leveraging technology, data analytics,
insights and strategic consulting solutions, MDC Partners drives
creative excellence, business growth and measurable return on
marketing investment for over 1,700 clients worldwide. For more
information about MDC Partners and its partner firms, visit our
website at mdc-partners.com and follow us on Twitter at
twitter.com/mdcpartners.
CONTACT:
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Alexandra
Delanghe
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|
MDC
Partners
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646-429-1845
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adelanghe@mdc-partners.com
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SOURCE MDC Partners Inc.