7/12/2019, 11:43 AM (Source: TeleTrader)
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Bain Capital to buy WPP Kantar stake for $3.1B

British advertising giant WPP will sell its 60% stake in data analytics arm Kantar to Bain Capital LP for around $3.1 billion, the former announced in a press release on Friday.

Under the terms of the transaction, which values Kantar at about $4 billion, WPP will use around 60% of the net proceeds to reduce debt to the low end of its target leverage range of 1,5 to 1.75 times its core earnings for 2020. The rest of the funds will be returned to shareholders, it added. The company said that it expects no less than 86% of the deal to be completed by early next year subject to regulatory and shareholder approvals.

"Kantar is a great business and we look forward to working with Bain Capital to unlock its full potential. As a strategic partner and shareholder in Kantar, WPP will continue to benefit from its future growth while our clients continue to benefit from its services and capabilities," said WPP CEO Mark Read.

Baha Breaking News (BBN) / DZ