Aegis expands presence in China through deal with Charm Communications
Marketing communications group Aegis Group (LSE: AGS) is extending its
reach in China through a deal with Chinese advertising-agency Charm
Communications.
Aegis acquired a 17.7% stake in the advertising company
and will establish a joint venture to give Charm’s Chinese clients
access to its international media network. The FTSE250 constituent
expects the partnership to deliver strong growth in the People’s
Republic of China.
Aegis will initially own 40% of the JV, which
it can increase to 100% through incremental options dated up to 2024.
Initial revenues will come from the combination of the Vizeum business
and Charm’s local clients. The joint venture will be named Vizeum China.
"This
deal significantly extends our Chinese operations and will further
transform our prospects in this exciting and dynamic market,” said
Aegis Media chief executive Jerry Buhmann, “Our international reach
combined with Charm's blue chip local client base, strong market
knowledge and relationships will create a compelling offering. We are
very excited about the potential growth ahead for Vizeum China."
Charm
was established in 1995 and has gross assets of US$143m. The company is
one of the largest advertising brokers to China Central Television
(CCTV), which controls nine of China's top 10 television channels.
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