It’s fast forward time for India’s largest advertising agency Hindustan Thompson Associates. With government allowing WPP to up its stake in HTA from 60 per cent to 74 per cent, the shareholders (read employees) can expect a windfall early next year. WPP will be buying shares worth Rs 57.60 crores.
Earlier this year as reported by exchange4media, in a private circular given to the shareholders, EmStock Holdings Limited, which currently holds 40 per cent share of HTA had asked for their approval to go ahead with the deal.
According to the offer WPP was to acquire 14 per cent shares in HTA after the amalgamation of EmStock with HTA. The amalgamation was on the basis of a 1:1 swap ratio between HTA and EmStock shares. The appointed date for the purpose of amalgamation was 1st July 2001.
After the amalgamation of EmStock shares with HTA, each employee would become eligible to sell approximately 35 per cent of their share holding in HTA to WPP.
With the approval from the government received, global advertising major WPP will be buying shares worth Rs 57.60 crores to up its stake from 60 per cent to 74 per cent. It is expected that WPP will be buying almost 68,000 shares @ Rs 8090 for Rs 10 equity share from the employees of HTA.
We at exchange4media will keep you updated on this. Watch out this space for more.