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BRIEF-STW Communications updates on merger with WPPS Australian and New Zealand businesses

Published 14/12/2015, 09:20 am
© Reuters.  BRIEF-STW Communications updates on merger with WPPS Australian and New Zealand businesses
WPP
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WPP
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Dec 14 (Reuters) - STW Communications Group Ltd SGN.AX :

* Merger with wpps Australian and New Zealand businesses SGN.AX

* Says merged group will have pro-forma normalised net sales of C.A$847 million and normalised EBIT of C.A$142 million

* Says incremental revenue synergies are also expected but have not been included in estimates

* "As a result of the transaction, WPP (L:WPP) will become the majority shareholder of STW with a shareholding of C.61%"

* Says transaction expected to be slightly EPS accretive4 based on pro-forma 2015 earnings before synergies

* Says transaction structured via a contribution of wpp's Australian and New Zealand businesses for an enterprise value of C.A$512 million

* Transaction will increase scale of stw's operations with merged group generating pro-forma normalised net sales of C.A$847 million

Source text for Eikon ID:nASX55Gfn

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