WPP Scangroup shareholders have voted to sell the firm’s business interests in Kantar across Africa. In a virtual voting session held on Wednesday 27 May, 99.98% of shareholders voted for the sale of its Kantar business in Africa which includes:
- An 80% shareholding in research and marketing group investment limited
- A 100% shareholding in Millward Brown East Africa limited
- The entire shareholding owned by the company indirectly through its subsidiary Scangroup Mauritius Limited of each of Millward Brown Nigeria Limited and Millward Brown West Africa to Kantar Square Two B.V.
When the company acquired the Kantar business in July 2018, the Shares Purchase Agreement (SPA) had “Tag and Drag” provisions, which provided that if WPP Plc decides to sell its interests in the Kantar business, then WPP Scangroup would also be required to sell its interest in the business on similar or better terms than the terms offered for the global business. It is for this reason that when WPP Plc decided to sell its majority interest in the Kantar business, we were obligated to participate in the sale by offering our interest in the business as well.Richard Omwella – Scangroup Chairman
The Tag and drag implies:
- The WPP Group is entitled to compel Scangroup to sell the Kantar Africa Business on a sale by the WPP Group of the Kantar Global Business
- Under the Tag Right, Scangroup has the right to sell the Kantar Africa Business as part of any sale by the WPP Group of the Kantar Global Business