The WPP Scangroup has advised its shareholders and investors to exercise caution when dealing in the shares of the listed company.
WPP Scangroup made the cautionary announcement through a media advertisement on Wednesday, October 18.
Notable, the move came after Hill Knowlton Strategies Nigeria Ltd, (HK Nigeria), a wholly owned subsidiary of the WPP Scangroup entered into a business and asset transfer agreement with Skot Public Relations limited.
“On 17 October 2023, Hill Knowlton Strategies Nigeria Ltd (HK Nigeria), a wholly owned subsidiary of WPP Scan group Plc (WPP Scan group) operating in Nigeria, entered into a business and asset transfer agreement with Skot Public Relations Limited (Skot PR) relating to the transfer of the entire business and assets of HK Nigeria to Skot PR (the Proposed Transaction).,” the cautionary announcement stated, in part.
In this case, Skot Public Relations will take over all the business dealings and assets previously owned by HK Nigeria. However, HK Nigeria will remain a non-operating subsidiary of the WPP Scan group.
Understanding the warning
In this case, the share prices of the WPP scangroup might get very volatile throughout the duration of this acquisition.
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Consequently, the share prices might dip or rise in extreme proportions. Therefore, shareholders are advised to be careful when transacting with the WPP Scangroup.
Further, the firm noted that the move was after analysis of market dynamics and growth opportunities.
“WPP Scangroup aims to strategically reallocate resources towards our primary markets, enhancing our core business operations and therefore contributing to long-term success.” The WPP Scan Group noted.
However, the company did not provide further details on the proposed transaction. They, however, promised to do so in compliance with the Capital Markets Act.
“Any further details of the Proposed Transaction will be issued by WPP Scan group in compliance with the Capital Markets Act and the applicable regulations,” WPP scangroup noted in its cautionary announcement.
About WPP Scangroup
The WPP-Scan group was started in January 1999 as a private limited liability company.
During this period, it was trading as Media Initiative East Africa Limited.
However, in October 2005, the company changed its name to Scan group Limited.
Scan group Limited was then listed on the Nairobi Securities Exchange (NSE) in August 2006.
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Impressively, it is currently the only marketing services company listed on the NSE.
In late 2013, Scangroup became a subsidiary of British multinational communications company, WPP.
Subsequently, it was renamed to WPP-Scangroup PLC in June 2015.
