, NAIROBI, Kenya, Mar 10 – Advertising firm Scangroup has dropped its intention to acquire majority shareholding in a South African marketing company Experiential Marketing (Proprietary) Limited (EMPL).
The Nairobi Securities Exchange (NSE) listed company announced on Tuesday that it has decided not to progress with the acquisition of 80.4 percent stake in the SA company as some regulatory approvals were not granted before the long stop date leading to the lapse of the transaction.
“Whilst most of the conditions were met before the long stop date set out in the agreement, some regulatory approvals were not granted shareholders of the company are advised to exercise caution when dealing in the shares of the company , ” said the company secretary Reuben Mwangi.
Scangroup had announced its intention to acquire 80.4 percent stake at EMPL and its subsidiaries together with certain identified assets in July 2014.
In December 2013 WPP acquired a controlling stake (50.1 percent) stake in Scangroup.
The company earned a net profit of Sh867.3 million in 2013, 15 per cent higher than the Sh752 million it posted in 2012.