Providence and WPP team up for Chime takeover

The offer stands at 365 pence per share, a 33% premium on Chime's closing share price of 275 pence on 29 July. The offer gives Chime an enterprise value of 14.5x its operating profit for 2014.

At the time of writing, Chime's share price had risen to 360.75 pence.

As global marketing and communications business WPP already holds 20.3% of Chime's shares, the deal would see Providence taking the lion's share, while WPP will acquire an indirect minority interest in the Bidco holding vehicle used to transfer Chime's shares.

Company
Chime was established by Lord Timothy Bell in 1989 following a management buyout of the company from Lowe Howard Spink and Bell, which created Lowe Bell Communications. In 1994, the company listed on the London Stock Exchange as Chime Communications.

Today, Chime is a communications and sports marketing group comprising CSM Sport & Entertainment; advertising and marketing services business VCCP Partnership; healthcare communications division Open Health; and CIE, an insight and engagement group. The CSM division is chaired by Lord Sebastian Coe, who owns a 0.6% stake in the company.

Chime operates four divisions, 56 agencies and employs 2,000 people. It has offices in the UK, France, Germany, Spain, Czech Republic, Russia, Abu Dhabi, Dubai, Qatar, South Africa, China, Hong Kong, Japan, Malaysia, Singapore, Australia, New Zealand, the US, Canada and Brazil.

Chime retains a 25% stake in communications company Bell Pottinger, a public relations company that was bought out by its management in 2012.

Chime reported revenues of £390m and profit of £11m in 2014, an improvement following a £9.1m loss in 2013.

People
Lord Davies of Abersoch is chairperson of Chime. Andrew Tisdale is managing director at Providence. Martin Sorrell is CEO of WPP.

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• Topics
• Buyouts
• UK / Ireland
• Media
• Providence Equity Partners
• unq2015sep