WPP PLC is closing in on a deal to sell a controlling stake in financial communications company FGS Global, according to the Financial Times on Tuesday.
The FT said the London-based advertising group could sell the business to private equity group KKR & Co Inc for about $800 million.
The announcement could come as early as Wednesday, the FT said, when the group is due to report its next financial results, citing three people close to the talks.
The sale of FGS will be the first struck since WPP named Philip Jansen as its new chair last week.
Under the terms of the deal being discussed, WPP will sell its 50.5% stake in FGS for about $800 million, giving the communications business an overall valuation of about $1.6 billion. KKR will take its stake from about 30% to about 80%.
WPP and KKR declined to comment to the FT.
https://www.ft.com/content/ebea193b-62e4-44a3-91e9-c7cfa002cbae
FGS was formed through the merger of London-based Finsbury, Frankfurt-based Hering Schuppener and Washington DC-based Glover Park Group and has close to 30 offices globally.
The group generated about $450 million last year in revenue, making about $95 million in earnings before interest, tax, depreciation and amortisation.
Shares in WPP rose 1.4% to 717.60 pence in London on Tuesday.
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