WPP Scangroup Shareholders Meet on 27 May to Vote on KSh5bn Subsidiaries’ Sale

WPP Scangroup Share Price Gains 26.3%

WPP Scangroup (NSE:SCAN) has announced that it’s extraordinary general meeting (EGM) will now take place on 27 May 2020.

The upcoming meeting will be conducted via a webcast at 10:00 SGT, as per the Singapore government’s Covid-19 (Temporary Measures), Act 2020 passed on 07 April.

This follows a High Court ruling in Nairobi, that allowed listed firms to hold AGMs virtually after issuing the statutory 14-day notice to shareholders on the intended meetings. 

However, firms will have to obtain a no-objection certificate from the Capital Markets Authority (CMA).

In a notice Friday, WPP Scangroup’s Board said: “Due to ongoing Government restrictions on public gatherings shareholders will not be able to attend the EGM in person but will be able to register for access information pertaining to the proposed resolution, follow the meeting…and to vote electronically or by proxy.”

The key resolution will be the sale of 100 percent of its shareholding in Millward Brown’s Nigeria, West Africa, and East African business.

WPP will also be selling its 80 percent shareholding in Research and Marketing Group Investment Limited.

If passed, the sale will realize approximately KSh 5 billion after estimated tax and costs.

Funds raised from the sale will be used in expansion and capital needs with 40 percent of the proceeds being paid out as a special dividend to shareholders.

To participate, in the EGM, registration opened Friday 1 May 2020 and will close on Sunday 24 May 2020 at 11:00 am. “Shareholders will not be able to register after Sunday 24 May at 11:00 am.”

“As the SPA remains a confidential documentary shareholder wishing to inspect the same will be required to confirm that they will maintain confidentiality by way of entry into of a non-disclosure agreement with the company,” read part of the notice.