Nairobi — WPP through its subsidiary of Cavendish Square Holdings has acquired 94 million additional shares at Sh1 each in Scangroup Limited making it the largest shareholder of the local advertising company.
WPP now holds 50.1 percent stake in Scangroup from 33.61 percent following the success of the transaction.
Scangroup Company Secretary Margaret Kipchumba says the transaction has been successfully completed and accordingly the board of directors of Scangroup have issued the additional shares with all accredited fully paid.
"In accordance with the share sale and share subscription agreement dated 12th August 2013 transaction has been successfully completed and accordingly the board of directors of Scangroup have issued the additional shares with all accredited fully paid," she said.
Kipchumba says the Nairobi Securities Exchange will list the additional shares on the main investment market segment with effect from Friday.
WPP proposed plans to raise its stake in Scangroup to 50.1 percent from 33.616 percent through purchase of additional shares, the advertising group announced in August 2013.
Global firms have been making acquisitions in Africa in recent years, seeking to reap from the continent's growing economies and its increasing confident consumers.
WPP first acquired 27.5 percent stake in Scangroup Limited in 2008 when shareholders sanctioned the allocation and issue of 60,689,655 new shares to WPP through its subsidiary Cavendish Square Holding BV.