Havas Advertising is to take full control of the Media Planning Group after signing an agreement with the planning and buying network's Spanish shareholders.
Havas, which previously held a 45 per cent stake in Media Planning Group, has agreed to hand over 9.3 per cent of its own shares as part of the deal in order to secure the remaining 55 per cent of the network. Under the terms of an agreement approved on Friday, Havas will also hand over pounds 32.53 million in cash to secure 100 per cent control.
The deal gives Media Planning Group shareholders a significant share in the world's fourth-largest advertising communications group. In addition, Fernando Rodes Vila, Media Planning Group's chief executive, has been added to the Havas board while the group chairman, Leopoldo Rodes Castafie, becomes a non-executive director.
Havas' chairman and chief executive, Alain de Pouzilhac, said the deal reflected Havas' dedication to broadening its media offering. 'This transaction will allow us to consolidate our existing leadership position and accelerate the expansion of the media business in other areas, particularly in the United States and Asia Pacific,' he said.
Media Planning Group will operate as Havas' media division with a reduced board of directors headed by Rodes Vila and Rodes Castafie.
'This is a great opportunity to be part of a leading media and advertising group with whom we share a vision of growth, leadership and value creation,' Rodes Vila said.
This article was first published on Campaign