The four founders of M&C Saatchi were today in line for windfalls of around £1.5 million a head after the independent advertising group confirmed the sale of subsidiary Walker Media for £36 million.
M&C Saatchi said “a majority of the cash proceeds” will be returned to shareholders.
Chief executive David Kershaw and fellow directors Maurice Saatchi, Bill Muirhead and Jeremy Sinclair each own around 6.8%, meaning they would collect around £2.4 million a head if all the cash were returned. However, M&C Saatchi will retain some money for “future investments”.
French giant Publicis Groupe has bought a 75.1% stake in media-buying agency Walker. Its clients, such as Marks & Spencer and Boots, will get greater negotiating power and global reach.
Fiona Orford-Williams, analyst at Edison Investment Research, said it was “a sensible move in a business where true scale makes a difference”, but M&C Saatchi should benefit by keeping 24.9%.
Numis Securities, M&C Saatchi’s broker which acted on the sale with corporate advisory firm Clarity, suggested the company would return cash through a share buyback, rather than a special dividend.
This is just the latest windfall for the directors who got £47.5 million in March after selling the freehold of M&C Saatchi’s Soho headquarters.
