M&C Saatchi share price closes down as management team eyes sale of advertising agency
M&C Saatchi today revealed that it was in talks to sell a 30 per cent stake in its UK advertising agency, M&C Saatchi UK, to five members of its management team.
In a short statement, the company revealed that the five potential purchasers are the advertising agency’s chairman Tim Duffy, chief executive Tom Bazeley, creative chief Justin Tindall, strategy chief Gaby Bell and managing director Tom Firth.
The company said there was no guarantee that the transaction would occur, that it was subject to certain conditions and that any further announcements would be made as and when it was appropriate to do so.
Share price for M&C Saatchi closed down 2.4 per cent at 302p.
Trade magazine Campaign quoted Duffy as saying: “We know that when the management team takes ownership, the agency’s performance improves.”
Campaign also stated that it understood the deal was being funded through a company loan.