Mitchells board recommends $363m Aegis deal
The board of Australia’s biggest media buyer Mitchell Communication Group has recommended to shareholders that they accept a bid from Aegis to purchase the company for $363m.
In a joint statement from MCG and Aegis released to the ASX this afternoon, the company said:
“If the transaction is approved, Harold Mitchell, founder and Chairman of Mitchell, intends to become a significant shareholder in Aegis and lead the combined Aegis Media Pacific business.”
The statement added: “If the Scheme is implemented, Mr Mitchell, being a 30% shareholder, intends to take his consideration in Aegis shares, becoming a significant shareholder in Aegis. He has further undertaken not to dispose of 85% of the shares he receives in relation to this transaction for a period of 24 months after the date that they are issued to him. Mr Mitchell also intends to lead the combined Aegis Media Pacific business as Chairman.”
I am not sure an agency that bills over $300M (Carat Australia) is struggling to make headway Tim. The Mitchells purchase is very exciting however.
A masterstroke by Aegis’ executives to achieve this significant purchase – bringing together some inspired leadership, excellent management talent, great media assets and a wide array of Australian-biased clients – nothing but ‘wins’ on both sides.