WPP to Sell Stake in Market-Research Business Kantar Group

By Nick Kostov and Suzanne Vranica

WPP PLC is looking to sell a majority stake in Kantar Group, its market-research unit, in what would be the advertising firm's largest sale since Mark Read was named chief executive in September.

WPP is expected to announce the decision Thursday when it reports its third-quarter results, people familiar with the matter said. The company will say it "intends to retain a stake" in Kantar, according to one of the people.

WPP had previously signaled that disposing of all or part of Kantar were options. The world's largest ad firm is selling assets to reduce its debt-to-earnings ratio and simplify its sprawling operations. The company was rocked in April by the sudden departure of longtime CEO and founder Martin Sorrell.

WPP is seeking a strategic or financial partner in Kantar that can take a majority stake, according to a person familiar with the matter.

Kantar, which has been underperforming, is valued at between EUR3 billion and EUR4 billion (between $3.44 billion and $4.59 billion), analysts at Kepler Cheuvreux wrote in a note last month.

Earlier this month, WPP's leadership met in Brooklyn, N.Y., for two days to discuss the future of the company, according to people familiar with the matter. Mr. Read told the gathering he was looking to reduce WPP's share in Kantar, according to a person in attendance, adding that maintaining a stake could give the ad firm a "strategic advantage."

Write to Nick Kostov at Nick.Kostov@wsj.com and Suzanne Vranica at suzanne.vranica@wsj.com

(END) Dow Jones Newswires

October 24, 2018 15:16 ET (19:16 GMT)

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