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GGT to pay pounds 96m for ad group

Monday 03 March 1997 19:02 EST
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The long-awaited takeover by GGT Group of the BDDP advertising group in France was finally announced yesterday. The pounds 96m deal comes almost six months after dealings in GGT shares were suspended at 223p, and during which time sterling has appreciated 16 per cent against the franc.

GGT accompanied the deal with a placing and open offer priced between 220p and 280p a share to raise pounds 55m, and an announcement that profits for the half year to last October rose from pounds 2.9m to pounds 3.4m before tax. The interim dividend rises from 2.1p to 2.3p.

Further funding for the deal will come from a pounds 67m new medium-term multi- currency credit facility arranged through ING Barings.

Part of the facility will also be used to repay bank debt currently provided by a syndicate of banks to BDDP and amounts currently outstanding under a revolving credit facility currently provided to GGT by Bank of Scotland.

It is expected that completion of the acquisition will occur and that dealings in the existing ordinary shares and the new ordinary shares will commence on 3 April.

GGT said that to attract and retain clients in an increasingly global market, it was important to strengthen the group's international presence. For the year ended December 31 1995, BDDP's consolidated revenues were approximately Fr1.14bn (pounds 123m).

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