Chime Communications has agreed to dispose of BPP Communications, part of the Bell Pottinger Business, to its chairman Lord Tim Bell and deputy chairman Piers Pottinger, as the group aims to move towards becoming a communications and sports marketing business.
The £19.6m deal will see BPP Communications also acquire from Chime Bell Pottinger Public Relations, a majority stake in Pelham Bell Pottinger (60%), Bell Pottinger Public Affairs, Bell Pottinger Sans Frontières and Bell Pottinger Middle East.
The 60% stake in Pelham Bell Pottinger will add to the 40% stake already help by the directors, effectively meaning they will own the whole business too.
The deal will be made up of £13.9m in cash, £1 million in cash paid on the completion of the balance sheet, the issue of 4.1 million ordinary and 4.1 million preference shares worth £4.1 million and representing 25% of the equity capital of BPP Communications, and ‘certain deferred obilications’ of £0.6 million.
Mark Smith will initially be appointed director to the Board of BPP Communications also, with the board including Lord Bell and Piers Pottinger, who will both resign from the Board of Chime, with a new non-executive chairman to take over in due course.
This disposal has been implemented in order to allow Chime to make its strategic move towards becoming a sports marketing business.
Christopher Satterthwaite, chief executive officer of Chime Communications, said: "The disposal is a natural evolution given the planned repositioning of the Group and is a key part of our future growth plan. When completed, the Group's growth prospects will be strong with a good acquisition pipeline, including international opportunities, already identified and funds available to make these acquisitions."