The takeover offer for WPP AUNZ by London-based WPP plc has been modified so that shareholders get a special fully franked dividend of up to $0.20 a share, an increase from $0.15.
The total offer, at $0.70 a share for WPP to take full control of the Australian operations, has been backed by the WPP AUNZ board subject to an independent expert concluding that the deal is in the best interests of minority shareholders.
The special divdend increase was announced today in an amendment to the deed scheme.
WPP plc, the world's biggest advertising company, is paying $230 million to buy the 38.5% of the company it doesn't own.
The UK company says the acquisition is in line with its global strategy of simplifying its structure and, if implemented, would move WPP to 100% ownership and control of Australian and New Zealand operations.
WPP AUNZ last month reported a 13.2% fall in revenue to $726.17 million for the full year to December. Headline profit fell almost 32% to $34.86 million.
Net sales were down 14.1% to of $612.3 million from $712.5 million in 2019, better than total ad market spend which was down 15%. The result was slightly ahead of guidance of between $607 million and $610 million.
WPP AUNZ returned to paying dividends, a fully franked 4.4 cents a share.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.