British company eyes bigger stake in Scangroup

British communications giant WPP Group is set to increase its stake in Scangroup, a Nairobi-listed public relations and advertising company, as it seeks to tighten its grip in the Kenyan market.

In a statement to newsrooms on Monday, the company said it intends to increase its shares from 33.6 per cent to 50.1 per cent through its subsidiary, Cavendish Square Holdings BV.

The move will see Cavendish Square Holdings BV and Ogilvy South Africa, currently owning a total of 95,735,442 ordinary shares in the Scangroup, double their stake in the company that has interests in public relations, media buying and advertising.

“The proposed acquisition constitutes foreign direct investment and will help Scangroup achieve its objectives,” said WPP in a statement.
The bid is subject to regulatory and shareholder approval.

CEO to retain position

Scangroup chief executive officer Mr Bharat Thakrar, who is among the top shareholders of the firm, has agreed to retain his position as well as his shareholding, according to the statement.

Founded in 1982 and listed in 2006 at the Nairobi Securities Exchange, Scangroup also has interest in marketing consultancy and digital marketing.

The company is headquartered in Kenya with offices in Ghana, Nigeria, Rwanda, Tanzania, South Africa and Uganda. It buys media in most markets in the sub-Saharan Africa.

Scangroup’s consolidated revenues as at 31 December 2012 were Sh4.2 billion.