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LONDON (Alliance News) - Sports marketing agency Chime Communications PLC on Friday said it has agreed to a takeover by FTSE 100-listed advertising and marketing giant WPP PLC and US private equity company Providence Equity Partners.
WPP and Providence will acquire Chime for 365 pence per share plus a 2.53 pence interim dividend payment. The deal value Chime at GBP374 million and is at a 33% premium to Chime's closing price of 275 pence per share on Wednesday, the last day before the talks were disclosed.
Chime shares were up 4.6% to 361.00 pence on Friday morning, one of the best performers in the FTSE All-Sahre.
WPP already owns a 20% stake in Chime and will contribute this to the Bell Bidder Ltd bidding vehicle the pair have set up to make the acquisition.
"Chime has achieved great success to date in building a leading position in the global sports marketing and communications industry, which is reflected in the attractive premium being offered to shareholders. However, to fulfil Chime's considerable growth potential, significant new capital is required. Providence and WPP offer Chime both the capital and the industry expertise to fast-track our ambitions to build a full scale, global sports marketing and communications business," said Evan Davies, the chairman of Chime.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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