Chime Communications Accepts WPP Consortium Offer--Update

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By Ian Walker and Simon Zekaria

LONDON--Chime Communications PLC (CHW.LN) said on Friday it has agreed a 374 million pounds ($582 million) offer from an investor consortium that includes WPP PLC (WPP.LN), as Martin Sorrell's U.K.-based advertising giant bets on the growing commercial reach of the international communications and sports marketing group.

Under the offer, accepting shareholders will get 365 pence a share and an interim dividend of 2.53 pence. In total the offer price is a 34% premium to Chime's closing share price of 274.5 pence on Wednesday, which was the day before Chime confirmed it was in talks with the consortium.

While Chime has achieved great success to date, it needs new capital to fulfill its growth potential, said Chairman Lord Davies of Abersoch.

The offer is being made by Bell Bidder Ltd. a new company formed by WPP and private equity firm Providence Equity Partners LLC.

At 0956 GMT, shares in Chime rose 4.6% to 361 pence, valuing the company at GBP348 million.

London, U.K.-based Chime includes businesses such as sport and entertainment agency CSM Sport and Entertainment, VCCP Partnership in advertising and marketing services and Open Health in healthcare communications.

It posted operating profit of GBP32.2 million in 2014, compared with GBP26 million in the previous year.

Write to Ian Walker at [e-mail]; @IanWalk40289749 and Simon Zekaria at [e-mail]