The biggest shareholder in M&C Saatchi is proposing an all share exchange merger with her acquisition vehicle to provide more deal firepower for the ad group and bolster its tech capabilities, her company said this morning.
M&C Saatchi announced bid interest from its director and biggest shareholder Vin Murria this morning, which could lead to the takeover offer of one of the biggest names in the business.
This morning, Murria’s AdvancedAdvT group set out the rationale on Friday, but did not provide any details on price.
It said the software entrepreneur was interested in exploring a share exchange merger to build a data, analytics and digitally focussed creative marketing business. It said there was no certainty that any formal offer would be made
Founded in 1995 by brothers and ad moguls Maurice and Charles Saatchi, the firm is still recovering from the 2019 accounting scandal that rocked the agency known for its campaigns for the Conservative Party.
The accounting oversight forced the ad giant to pay a one-off £6.4m exceptional charge after auditors unearthed a shocking ’misapplication of accounting policies’.
The agency footed £11.6m-worth of adjustments to its 2018 and 2019 financial results, and at the peak of this nadir the share price took a thrashing, plummeting nearly 50 per cent.
Shares have rocketed yesterday afternoon, up nearly nine per cent, which adds to its steady incline in recent days as Murria increased her stake: giving M&C a market valuation of more than £240m.