Dentsu Inc. acquires majority stake in Grant Group, a leading advertising group in Sri Lanka, and establishes Dentsu Aegis Network base in the country
The text of the Dentsu Inc. news release distributed on March 30 is as follows.
March 30, 2017
Dentsu Inc. Acquires Majority Stake in Sri Lanka's Leading Advertising Group Grant Group and Establishes Dentsu Aegis Network Base in the Country
Dentsu Inc. (Head Office: Minato-ku, Tokyo; President and CEO: Toshihiro Yamamoto; Capital: ¥74,609.81 million) has reached an agreement with the shareholders of the Grant Group (Headquarters: Colombo, Chairperson & Managing Director: Neela Marikkar, hereinafter "Grant Group"), a leading and long-established advertising group in Sri Lanka, to acquire a majority stake in the group.
The agreement includes the acquisition of 85% of the shares of Grant Advertising Group and 70% of the shares of Grant Agencies, both subsidiaries of the Grant Group, and an option for Dentsu to make Grant Agencies a wholly owned subsidiary in the future.
Founded in 1958, Grant Group is one of the oldest and largest groups in Sri Lanka, and the largest independent group in the market. With a total of 150 employees, it provides services to more than 60 leading global and local companies.
The company consists of two groups, Grant Advertising Group and Grant Agencies, and has a total of seven brands under its umbrella that provide services such as advertising (mass media and OOH), creative, PR, content, and digital.
The seven brands include Response Marketing, which has a reputation for creative excellence and has won various advertising awards, Grant Advertising, which handles media buying, and Grant Media.
Since the end of its civil war in 2009, Sri Lanka has experienced strong economic growth and has become a promising emerging advertising market. Through the acquisition of the Grant Group, Dentsu Inc. will secure a base in Sri Lanka and use it as a strategic base for expanding its business in the South Asian market.
Following the acquisition, Dentsu Inc. will rename Grant Advertising to Dentsu Grant Inc. and integrate Grant Media into the Carat network, one of the Group's global network brands. By strengthening collaboration with Group companies, Dentsu Inc. will accelerate its growth strategy in the Sri Lankan and South Asian markets.
The impact of this acquisition on Dentsu's consolidated results for the fiscal year ending December 2017 will be minimal.
[Overview of Grant Group]
Company Name: Grant Advertising Group (Pvt) Ltd
Grant Agencies (Pvt) Ltd
Headquarters: Colombo, Sri Lanka
Established: April 1958
Shareholder Structure: After completion of acquisition procedures
Dentsu Inc. Aegis Network holds 85% of "Grant Advertising Group"
70% of Grant Agencies
Revenue: 284.32 million Sri Lankan Rupees (approx. 210 million yen) (Fiscal Year Ended December 2015)
Representative: Neela Marikkar (Chairperson & Managing Director)
Number of Employees: 150
Business Description: Provides comprehensive services in the advertising and communications field
End
Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2017/0330-009208.html
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