LONDON: The Boards of Porta Communications Plc and SEC Global have entered into discussions concerning a potential all-share merger of the two companies.
The Potential Merger would create a strategic communications company of scale with offices in key markets across the UK, Europe, the Middle East, APAC and South America.
The benefits could include:
· Complementary geographic networks with very limited crossover
· The scale and capacity to extend the international network to strategic markets such as the US and additional markets in Asia
· The roll-out of proprietary new market research and communications product offerings across the enlarged group’s footprint
· Synergies and reduced head office costs relating to a combined listed entity
· A strengthened Balance Sheet for the combined group
· An expanded shareholder base.
The Independent Directors of Porta believe that the combination of Porta and SEC has the potential to be attractive to all shareholders.
For these reasons, the Independent Directors of Porta have resolved to proceed with discussions with SEC and both parties are preparing to undertake mutual and reciprocal due diligence, as is customary for a share transaction of this nature, with a view to the Independent Directors and the board of SEC agreeing the terms of the Potential Merger.
SEC Global and Porta Communications have also entered into a convertible loan agreement pursuant to which SEC will, subject to Porta shareholder approval, provide a loan of £1 million with a coupon of 5% per annum and which will be convertible into Porta ordinary shares by either company giving notice to convert subject to certain conditions.
Porta is a fully integrated communications agency, operating locally, nationally and internationally, with specialisms including financial, corporate and consumer public relations, public affairs and research and multi-capability marketing, brand and creative communications.
The Group has offices in Abu Dhabi, Beijing, Brisbane, Bristol, Canberra, Cardiff, Leeds, Edinburgh, Hong Kong, London, Manchester, Melbourne, Perth, Greater China, Singapore and Sydney.
SEC Global is a partnership of agencies, specialising in advocacy, public relations and strategic communications, established 30 years ago in Italy and now spanning Europe and Latin America with offices in Bari, Berlin, Bogota, Brussels, Edinburgh, London, Madrid, Milan, Paris, Rome, Turin, Venice, Warsaw.
From 3 August 2017, SEC became one of Porta Communications Plc’s major shareholders and, through Porta’s network is able to provide support and advice to clients in Abu Dhabi, Singapore, Greater China and Australia.[the_ad id=”31605″]