REG-M&C Saatchi PLC Acquisition

Released : 04/05/2007 17:00

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RNS Number:1505W 
M&C Saatchi PLC 
04 May 2007 
 
 
 
M&C Saatchi PLC 
4 May 2007 
 
                                M&C SAATCHI PLC 
                        ("M&C Saatchi" or the "Company") 
 
M&C Saatchi to acquire Christine Walker's stake in Walker Media Holdings Limited 
 
 
M&C Saatchi plc is pleased to announce that it has agreed to acquire all of the 
issued ordinary shares held by Christine Walker in Walker Media Holdings Limited 
("Walker Media"). 
 
Walker Media is a media planning and buying company that Christine Walker 
founded with Phil Georgiadis and M&C Saatchi in 1997. Walker Media is the eighth 
largest media agency in the UK, with annual billings in excess of £300 million. 
 
As at today's date, M&C Saatchi owns 75% of the shares in Walker Media. 
Christine Walker is currently the chairman of Walker Media, but has resigned 
from such position and as a director of Walker Media group companies with effect 
from 30 June 2007. As a result of her current position, the acquisition of the 
shares held by Christine Walker in Walker Media ("Christine Walker's Shares") 
now being announced is a related party transaction under the AIM Rules. 
 
Christine Walker's Shares represent approximately 14% of the issued share 
capital of Walker Media. As consideration for the acquisition of Christine 
Walker's Shares, Christine Walker will receive an amount per share based on a 
valuation of the Walker Media group equal to 15.7 times the consolidated profit 
for the Walker Media group (after tax, interest, depreciation and amortisation) 
for the financial year ending 31 December 2007. This will be satisfied by the 
issue of shares in M&C Saatchi to the value of £2,154,040, with the remainder to 
be satisfied by cash. 
 
This transaction is scheduled to complete on 2 July 2007. M&C Saatchi have 
agreed to make a cash payment by way of initial consideration on such date equal 
to £6,289,797. This will be subject to an adjustment payment in cash by either 
M&C Saatchi or Christine Walker (as applicable) following the determination of 
the consolidated profit for the Walker Media group for the financial year ending 
31 December 2007. 
 
M&C Saatchi's directors, having consulted with Numis Securities Limited, 
consider the terms of the transaction to be fair and reasonable insofar as M&C 
Saatchi's shareholders are concerned. 
 
 
For further information: 
 
M&C Saatchi plc 020 7543 4500 
David Kershaw, Chief Executive 
 
Tulchan Communications 020 7353 4200 
Celia Gordon Shute 
 
Notes 
 
Walker Media started trading in January 1998 as a 50:50 joint venture with M&C 
Saatchi. In July 2004 M&C Saatchi acquired a further 25% of Walker Media's 
shares when the Company was launched on the London AIM market. 
 
 
 
                      This information is provided by RNS 
            The company news service from the London Stock Exchange 
 
END