Vin Murria is vying to take the company private
(Picture: M&C Saatchi)Ad agency M&C Saatchi has once again extended the “put up or shut up” deadline for a potential takeover bid from its deputy chair.
AdvancedAdvT, led by technology entrepreneur and chairman Vin Murria, has been trying to convince the M&C board — of which Vin is deputy chair — to back a reverse takeover. The deadline for deal talks was today but has now been extended until 5pm on 28 April. It is the third extension since AdvancedAdvT first approached the Soho agency in January.
Murria has a personal stake in M&C Saatchi of 12.5%, making her the biggest shareholder, and AdvancedAdvT has built up a 9.8% stake worth £24 million, which would value the advertising network at anywhere up to £250 million.
While extending the deadline, M&C’s board — absent of Murria — said they “reiterate the concerns“ about the bid, arguing it undervalues the business and questioning AdvT’s strategy.
Discussions between both parties are ongoing.
M&C Saatchi was founded in 1995 by advertising industry titans Maurice and Charles Saatchi after a revolt by shareholders at their previous agency, the infamous Saatchi & Saatchi.
M&C Saatchi clients include car marque BMW, drinks manufacturer Pernod-Richard and fashion brand Converse.
The advertising network was left reeling for a full year after an investigation by the company by the Financial Conduct Authority (FCA) into potential accountancy irregularities. The industry watchdog closed the case in January and took no enforcement action over the matter.
Last month AdvancedAdvT said it would offer each M&C Saatchi shareholder 1.939 new AdvancedAdvT shares and 40p in cash for each. Murria made her first approach for M&C Saatchi in January, and submitted a bid of 182.75p per share.
Described as ‘Britain’s queen of tech,’ Indian-born Murria founded Computer Software Group in 2002 before selling it five years later to private equity house Hellman & Friedman for £500 million.
She then founded Advanced Computer Software Group, which provides IT services to the National Health Service and other public entities. It was acquired by investment firm Vista Equity Partners for £765 million in 2015.
