WPP PLC Completion of Kantar transaction (8956V)
December 05 2019 - 1:00PM
UK Regulatory
TIDMWPP
RNS Number : 8956V
WPP PLC
05 December 2019
For Immediate Release 5 December 2019
WPP PLC ("WPP")
Completion of Kantar transaction
Kantar transaction completed; leverage reduced to lower end of
target range; share buyback to commence shortly
WPP today announces that it has completed the transaction to
sell 60% of Kantar, its global data, research, consulting and
analytics business, to Bain Capital Private Equity, with respect to
approximately 90% of the Kantar business, and that the
proportionate transaction proceeds have been received.
Following final completion in respect of the remaining Kantar
business in the first half of 2020, total aggregate net proceeds
after transaction costs, tax and WPP's continuing investment in 40%
of the equity of Kantar are expected to be approximately $3.1bn
(approximately GBP2.4bn(1) ).
The Kantar transaction was originally announced on 12 July 2019
and further details were included in a circular sent to WPP's
shareholders on 7 October 2019. As previously set out, WPP intends
to retain approximately 60% of the net proceeds (approximately
$1.9bn or GBP1.4bn) to reduce debt to the low end of the target
leverage range of 1.5 - 1.75x average net debt/EBITDA(2) for 2020,
and to return approximately 40% of the net proceeds (approximately
$1.2bn or GBP950m) to shareholders. WPP today announces that the
return to shareholders will be executed via a share repurchase
programme, which we expect to commence shortly, with an initial
tranche of approximately GBP250m, of the total GBP950m, planned to
be completed by March 2020.
Mark Read, Chief Executive Officer, WPP, said:
"The completion of the Kantar transaction, earlier than
anticipated, achieves the objective we set out in December 2018 to
strengthen our balance sheet, and substantially completes our
disposal programme. It is a major step in simplifying and focusing
WPP, and we intend to return around 8% of our share capital to
shareholders through a buyback programme. The partnership with Bain
Capital means that we will participate in the future growth of
Kantar as well as allowing our clients to continue to benefit from
Kantar's services."
(1) All $ values are translated into GBP at an exchange rate of
GBP1:$1.31
(2) Net debt/EBITDA ratio calculated excluding impact of IFRS
16: Leases
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of WPP is Marie Capes, Company Secretary.
For further information:
Investors and analysts
Peregrine Riviere +44 7909 907193
Lisa Hau +44 7824 496015
Fran Butera (US) +1 914 484 1198
Media
Chris Wade +44 20 7282 4600
Kevin McCormack (US) +1 212 632 2239
Juliana Yeh (APAC) +852 2280 3790
Richard Oldworth, +44 20 7466 5000
Buchanan Communications +44 7710 130 634
wpp.com/investors
This announcement is being distributed to all owners of Ordinary
shares and American Depository Receipts. Copies are available to
the public at the Company's registered office.
The following cautionary statement is included for safe harbour
purposes in connection with the Private Securities Litigation
Reform Act of 1995 introduced in the United States of America. This
announcement may contain forward-looking statements within the
meaning of the US federal securities laws. These statements are
subject to risks and uncertainties that could cause actual results
to differ materially including adjustments arising from the annual
audit by management and the Company's independent auditors. For
further information on factors which could impact the Company and
the statements contained herein, please refer to public filings by
the Company with the Securities and Exchange Commission. The
statements in this announcement should be considered in light of
these risks and uncertainties.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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