East Africa’s biggest advertising firm is about to sell majority shareholding to global advertising giant, Britain’s WPP (Wire and Plastic Products).
WPP announces that it has agreed to acquire additional shares in Scangroup Limited in Kenya which will increase its interest to 50.1%, the company said.
Scangroup employs over 790 people in its offices in Kenya, Ghana, Nigeria, Rwanda, Tanzania, South African and Uganda. It is the biggest buyer of media space in sub Saharan Africa. As of December 2012, the revenues from the company was at Kshs 4.2 billion with an asses of Kshs 8.6 billion.
The company has itself done acquisitions of its own over the years taking over ad companies such as Red Sky and Ogilvy Africa.
This means that the group will be joining WPP which is the world’s greatest ad body having acquired agencies from all the corners of the world.
“This investment is a further step towards WPP’s declared goal of developing its businesses in the fast growing economies of Africa, as well as Asia Pacific, Latin America, the Middle East, Central and Eastern Europe,” the company said.
In South Africa, the Group (including associates) generates revenues of around US$550 million and employs 24,000 people. Across the continent of Africa, the Group (including associates) collectively generates revenues of US$700 million and employs 26,000 people.