NEWS: Citigate goes public with Incepta merger

Citigate Communications, ranked eighth in the PR Week Top 150, is to merge with listed sales promotion and publishing company Incepta Group in a reverse takeover deal.

Citigate Communications, ranked eighth in the PR Week Top 150, is to

merge with listed sales promotion and publishing company Incepta Group

in a reverse takeover deal.



The deal was announced on Wednesday and values Citigate - which derives

about 30 per cent of its fee income from PR - at around pounds 29

million. It will make millionaires of two directors: Citigate chief

executive David Wright, whose stake is valued at pounds 2.5 million, and

soon-to-retire non-executive chairman Andrew Campbell-Harris.



It takes the form of an all share transaction involving the maximum

issue of 133 million Incepta shares (328 Incepta shares for every one

Citigate share). This is subject to Citigate achieving pre-tax profits

of pounds 3 million for the year to 30 September 1997 - a 40 per cent

jump on this year’s figure of pounds 2.15 million.



Wright had made no secret of his plans to float Citigate once it had

reached pounds 4 million pre-tax profit. The decision not to wait was

prompted, said Wright, by his plans for further growth including

acquisitions in North America, Singapore and Malaysia.



‘If we are to become a really global player, to build the international

part of the business, we felt we needed to become a public company,’

said Wright.



Incepta, formerly WMGO Group, has three main divisions: sales promotion

company LGM, exhibitions company Park Avenue and contract publisher

Mediamix. It is currently capitalised at pounds 14.4 million and

reported profits of pounds 1.07 million for the six months to 31 August

1996, compared with a loss of pounds 304,000 for the same period last

year.



Wright and Citigate finance director Kevin Steeds keep their roles

within the enlarged company, while Incepta chief executive Graham Green

becomes deputy chief executive and Bob Morton remains non-executive

chairman.



Wright said the fit between the two companies was good, adding: ‘They

[Incepta] have tidied up the company, there are no management issues’.



Several other members of the Citigate’s board - who between them hold 35

per cent of the equity - will see their stakes valued at over pounds

500,000.



Leader, p9



Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest Articles

Max Clifford trial jury to continue deliberations after Easter break

Max Clifford trial jury to continue deliberations after Easter break

The jury in the trial of celebrity publicist Max Clifford has been sent home for Easter and will reconvene on Tuesday for further deliberations about its verdicts on 11 charges of indecent assault.

Home Office brings in Munro & Forster to campaign against FGM

Home Office brings in Munro & Forster to campaign against FGM

The Home Office has tasked Munro & Forster (M&F) with supporting its campaign to eradicate female genital mutilation (FGM) as part of a wider retained brief.

Former White House press secretary Dee Dee Myers to join Warner Bros

Former White House press secretary Dee Dee Myers to join Warner Bros

Warner Bros has appointed former White House press secretary Dee Dee Myers as EVP for worldwide corporate communications and public affairs, effective September 2.

Edelman takes a ride on Branson's slow-motion space adventure

Edelman takes a ride on Branson's slow-motion space adventure

Virgin Galactic is probably on every PR agency's dream assignment list, but previous delays to Richard Branson's space venture suggest it may not be a complete blast.