ScanGroup Commits to Selling Kantar Businesses

In Africa, marketing services network WPP ScanGroup is to meet an obligation to sell two of its subsidiaries, following parent company WPP's decision to sell 60% of Kantar to private equity firm Bain Capital.

ScanGroup began as ad agency Scanad in 1982. WPP subsidiary Kantar Millward Brown then formed a joint venture with successor company ScanGroup, merging its Kenya office into a newly formed operation; and then expanded the partnership with the opening of a West African hub office in Accra, Ghana. In the meantime, WPP had taken a 27.5% stake in ScanGroup in 2009, and in 2013 it increased this to a majority share of 50.1%.

WPP recently announced it will be selling the stake in Kantar to private equity firm Bain Capital for around £3.2bn ($4.0bn). According to online publication 'Business Daily Africa', an existing agreement between WPP and ScanGroup commits the latter firm to sell its stakes in the Kantar affiliates it owns in Africa. These include operating units in various African countries which trade under the Kantar Millward Brown and Research and Marketing brand names.

The Group confirmed in a statement: 'ScanGroup provides an update to the market in relation to the proposed sale of its Kantar business in Africa, which includes an 80% shareholding in Kantar TNS and a 100% shareholding in Kantar Millward Brown'.

ScanGroup is led by CEO Bharat Thakrar (pictured) and is online at: www.wpp-scangroup.com .