(Alliance News) - WPP PLC on Monday said it has submitted a proposal to acquire the remaining shares in WPP AUNZ it does not already own.
The London-listed advertising firm currently holds a 61.5% stake in WPP AUNZ, which is listed on the Australian Securities Exchange.
WPP is proposing to buy the shares at AUD0.55 each in cash, a premium of 34% to Friday's closing price. The total consideration payable by WPP for the remaining stake would be AUD181 million, equivalent to around USD133.6 million.
WPP AUNZ shares closed up 35% at AUD0.56 in Sydney on Monday.
"The proposed acquisition is in line with WPP's global strategy of simplifying its structure and will move WPP to 100% ownership and control of its Australian and New Zealand operations," WPP said.
The proposal, which has not yet been put to WPP AUNZ shareholders, will be subject to customary conditions and regulatory approvals. It is expected to be completed in 2021 if approved.
Shares in WPP were down 0.2% at 747.80 pence in London on Monday.
By Zoe Wickens; zoewickens@alliancenews.com
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