Chime confirms WPP/Providence buy-out offer

Chime, the communications group that owns VCCP, has confirmed that it is mulling a sale to Providence Equity Partners and WPP.

Chris Satterthwaite is the chief executive of Chime Communications
Chris Satterthwaite is the chief executive of Chime Communications

The board of Chime confirmed that it was in advanced discussions with a consortium formed of WPP and the US private equity firm, Providence, after Sky News broke the news earlier today.

In a statement, Chime said that it is considering a cash offer for its entire issued share capital at 365 pence per share, as well as an interim dividend for the current year of 2.53 pence per share.

WPP already holds an approximate 18 per cent share in Chime Communications.

Chime has convened an independent committee to discuss the deal with the Providence/WPP consortium.

The Chime statement noted that "there can be no certainty that the consortium will proceed to make an offer for Chime", adding that further announcements will be made in "due course".

Chime Communications reported pre-tax profit of £30.1 million in the 2014, with operating income of £198.9 million.

WPP declined to comment on the deal.


Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.


Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Just published