Publicis Groupe buys back 18M shares from Dentsu

Cristina Blanaru Creativity

Following an offer made by Dentsu, Publicis Groupe has purchased a block of 18M own shares from the Japanese company for Euro 644.4M (Euro 35.80/share).

The buy was made afetr  Supervisory Board of Publicis Groupe examined the Management Board’s proposal to proceed with the buy-back, and concluded that the acquisition of 18 million shares and immediate cancellation of 10M+ shares within the framework of the buy-back program approved by the Groupe, was in the interests of Publicis Groupe and its shareholders.

Of the 18 million shares purchased, Publicis Groupe has cancelled 10,759,813 shares, maximum number the Groupe was permitted to cancel. The remaining 7M+ treasury shares will be kept in order to cover incentive plans for retention shares, performance shares, stock options and acquisitions. The purchase was fully financed from Publicis Groupe’s available cash.

This buy-back also terminated the shareholders’ agreement and the Strategic Alliance Agreement  Dentsu and Publicis Groupe entered into in 2003.  The 2 representatives of Dentsu resigned, as a result, from Publicis Groupe’s Supervisory Board and they will not be replaced.

The 2 groups will continue to have relations and work together. The two joint ventures between Dentsu and Publicis Groupe will continue in the same form and with the same shareholdings as previously (Beacon Communications and Dentsu Razorfish owned respectively 66% and 19.35% by Publicis Groupe). Moreover, partnerships related to specific clients that the two groups have in common will continue, in the clients’ interests.

Publicis Groupe is the third largest communications group in the world, offering the full range of services and skills: digital and traditional advertising, public affairs and events, media buying and specialized communication. Its major networks are Leo Burnett, MSLGROUP, PHCG (Publicis Healthcare Communications Group), Publicis Worldwide, Rosetta and Saatchi & Saatchi. VivaKi, the Groupe’s media and digital accelerator, includes Digitas, Razorfish, Starcom MediaVest Group and ZenithOptimedia. Present in 104 countries, the Groupe employs 53,000 professionals.