(Alliance News) - Ad agency M&C Saatchi PLC on Thursday confirmed it has received a preliminary takeover approach from London Main Market-listed acquisition vehicle AdvancedAdvT Ltd.
Vin Murria, the executive chair of AdvancedAdvT, also is an M&C Saatchi director, so M&C Saatchi said it will form an independent committee to consider any offer made.
AdvancedAdvT, formerly known as Marwyn Acquisition Co I Ltd, listed in March. It is backed by Marwyn Investment Management, with a 15% stake. Murria holds 13%.
AdvancedAdvT announced on Wednesday that it had bought a 9.8% stake in M&C Saatchi at GBP2.0 per share, spending GBP24.0 million. M&C Saatchi shares were up 11% at 209.00p early Thursday in London, giving it market capitalisation of GBP256.7 million. The stock has more than doubled in the past year.
AdvancedAdvT shares were down 1.7% on Thursday at 102.25p.
London-based M&C Saatchi said: "No proposal has been received but the board has been told to expect one in the near term. Accordingly, there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made."
It added: "The board confirms that the new strategy announced in Q1 2021 is already delivering, with the company's performance consistently exceeding expectations, demonstrated by a succession of positive trading upgrades."
By Tom Waite; thomaslwaite@alliancenews.com
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