M&C Saatchi has sold out of its South Africa business.
The UK-based global group's shares have been acquired by the local leadership team for £5.6 million (AUD10.7 million) cash.
M&C Saatchi says the move is in line with the company’s strategy to simplify operating structure while retaining its affiliations.
The group in January did similar transactions in Hong Kong and Sweden.
The South Africa group includes M&C Saatchi Abel, Connect, Levergy, Razor, Dalmatian and Black & White.
In the year to December 2023, the M&C Saatchi South Africa Group generated a consolidated profit after tax of £1.3 million.
"We look forward to continuing our collaboration with M&C Saatchi Abel and the South Africa Group as our trusted partners in the dynamic African markets,” said Zillah Byng-Thorne, executive chair of M&C Saatchi.
“They have a truly vibrant Africa network of agencies servicing large global brands and this is an exciting development which is very much a win-win for both M&C Saatchi and the M&C Saatchi South Africa Group.
“We look forward to further collaboration in the region and expanding our offering and services to our clients."
M&C Saatchi reported net revenue down 7% to £120.4 million in the half year to June, reporting "a significant slowdown in technology client spend".
But the company has since reported “improved momentum” in the second half of the year.
The full year result, due to be announced this month, would be underpinned by "cost saving initiatives" and a "simplified structure".
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