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UPDATE 1-Publicis completes share buyback from Dentsu
February 15, 2013 / 8:46 AM / 5 years ago

UPDATE 1-Publicis completes share buyback from Dentsu

* Publicis pays 181.4 mln euros for rest of its shares held by Dentsu

* Transaction will boost 2013 EPS

* Publicis bought back bulk of own shares from Dentsu in Feb 2012 (Adds details, background)

PARIS, Feb 15 (Reuters) - French advertising agency Publicis spent 181.4 million euros to buy back around 3.9 million of its own shares from Japanese partner Dentsu, as part of a deal that ends a nine-year alliance between the two sides.

The Japanese advertising group, which had sold the bulk of its Publicis stake back to the French company in February 2012, no longer holds shares in the firm as a result of this latest transaction.

Publicis said on Friday that it had bought the shares from Dentsu at 46.82 euros per share. It represents a discount of 4.7 percent from the Publicis’ closing share price on Feb. 14.

The transaction will have a positive impact of approximately 1.5 percent on diluted earnings per share in 2013 and of 1.7 percent on a full-year basis, the statement said.

The 3.9 million shares acquired in the transaction will be held as treasury stock and will be used for attendance and performance share awards or stock options schemes.

Publicis said it funded the purchase entirely from its available funds.

The buyback ends the shareholders’ agreement and the strategic alliance that Dentsu and Publicis entered into in 2003.

Reporting by Dominique Vidalon; editing by Blaise Robinson

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