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AEGIS JOINT VENTURE AND EQUITY STAKE

Aegis Media announces JV with leading Chinese media agency, takes minority stake

Aegis Group plc ("Aegis"), the marketing communications group, today announces that it is to extend its operations in China, with the acquisition of a 17.7% shareholding in Charm Communications Inc ("Charm"), one of China's leading TV buying and advertising agencies. The gross assets of Charm in total are $143m. In addition, Aegis's Vizeum arm and Charm are establishing a joint venture ("the JV") which will operate as Vizeum China.

Vizeum's China operation will form the initial 40% of the JV's revenues and Charm will transfer local clients to the JV to form the remaining 60%. The shareholder structure of 40% Aegis and 60% Charm will move towards 100% Aegis ownership by 2024 via incremental put and call options.

Charm, established in 1995, is a leading television advertising service provider in China and one of the largest brokers to China Central Television (CCTV), the country's largest national TV network that controls nine of China's top 10 television channels. Charm has a blue chip local client base and the joint venture will combine the business's domestic expertise and relationships with Vizeum's international scope and client base, creating a powerful platform in China with international media agency standards.

Jerry Buhlmann, CEO Aegis Media, said: 

 "This deal significantly extends our Chinese operations and will further transform our prospects in this exciting and dynamic market. China is already the second largest advertising spending market in the world and continues to experience strong growth. Charm is a great business with a strong management team and a track record of profitable growth. Our partnership will be beneficial to both companies. Our international reach combined with Charm's blue chip local client base, strong market knowledge and relationships will create a compelling offering. We are very excited about the potential growth ahead for Vizeum China."

Mr He Dang, Founder and CEO of Charm, who will be Chairman of the JV, said:

"We are delighted to have formed this partnership with Aegis Media. The combination of Charm's leading market position in television advertising in China and Aegis Media's world-class digital and new media capabilities mean we will be able to provide our clients with  best-in-class integrated marketing solutions across key advertising platforms. As well as enhancing our offering in China, this new joint venture will give our Chinese clients access to the Aegis global network, bringing them the tools and expertise to extend their brands in markets around the world."

 

For further information contact:  

Aegis Group plc: +44 (0) 20 7070 7708/7725  

  

Jerry Buhlmann, Chief Executive Officer, Aegis Media 

Nick Priday, Chief Financial Officer, Aegis Group plc

Tulchan Communications: +44 (0) 20 7353 4200  

  

Susanna Voyle

Tom Rayner

 

 

  

NOTES TO EDITORS:

AEGIS MEDIA

Aegis Media's four major brands are world-leading marketing and communications businesses:

• Carat is the world's largest independent media communications specialist present in 82 countries across the world. 

• Isobar is the world's largest global digital network, dedicated to creating time for consumers to spend with brands. 

• Posterscope is the out-of-home sector leader, and the only truly global network, constantly pushing the technological boundaries. 

• Vizeum, our challenger media brand, has a pioneering approach to communications.  

Aegis Media is part of Aegis Group plc, the marketing communications group. It operates in media communications with Aegis Media and market research with Synovate. Aegis is listed on the London Stock Exchange.

 VIZEUM

Since its launch in 2003, Vizeum globally has grown to occupy 47 offices in 36 countries. The worldwide network billings have reached over US$5.3 billion and Vizeum employs 2,650 people.

Vizeum was set up as a challenger brand, to help clients interrogate the way their brands are perceived in the marketplace. Its core proposition is to understand what stimulates people and drives motivation to consider and engage with the brands they buy.

CHARM COMMUNICATIONS

Charm, established in 1995, is a leading television advertising service provider in China. For each of the past six years, Charm was the largest broker for China Central Television (CCTV), the country's largest national TV network that controls nine of China's top 10 television channels. In particular, Charm was the top ranked advertising agency in China, based on the total value of successful bids for prime-time advertising on CCTV. Under its media investment management business, Charm also secures advertising media inventory pursuant to exclusive arrangements with Shanghai Dragon Satellite TV and Tianjin Satellite TV, which are among the top-10 satellite TV channels in China. Charm offers integrated advertising solutions such as market research, branding strategies, creative design, development and production of advertisements and overall management of advertising campaigns. Charm's clients include blue chip local clients and state-owned businesses such as China Life, China Telecom, People's Insurance, China CITIC Bank, ICBC, Bosideng Men's fashion and Yunnam Baiyao Pharmaceutical.

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