WPP share price: Ad giant acquires Vietnam’s Sofresh

on Jun 19, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Thursday, June 19: British advertising giant WPP Plc (LON:WPP) has boosted its assets in Vietnam, by acquiring a leading creative agency in the country.

The world’s largest advertising company announced today that its wholly owned operating company XM Asia, had agreed to acquire a majority stake in Sofresh, a Ho Chi Minh City-based business, which provides digital solutions across multiple digital channels, including social media, mobile and the web.
In a statement to the London Stock Exchange, WPP said that “This acquisition marks a further step towards WPP’s declared goal of developing its networks in fast-growth markets and sectors and continues WPP’s strategy of strengthening the Group’s capabilities in digital media”.

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In today’s trading, WPP shares were up 0.4 percent at 1,267.00p, as of 12:54 BST. The company’s stock has fallen just over eight percent since the start of the year.
**Sofresh**
Founded some seven years ago, Sofresh has become one of the leading creative agencies in Vietnam, having a significant client base. The firm’s customers include global companies such as GlaxoSmithKline Plc (LON:GSK), Diageo Plc (LON:DGE), Unilever Plc (LON:ULVR), as well as a range of local businesses.

WPP did not disclose the financial terms of the transaction, but revealed some financial information about Sofresh. According to the statement, Sofresh generated revenue of VND 35.7 billion (nearly £1 million) last year, and had growth assets worth VND 30.1 billion as of December 31. The company employs 85 people.
**WPP in Vietnam**


With the acquisition of Sofresh, WPP has now bought two Vietnamese companies since the start of the year and three in the last seven months, the UK ad giant said. In January, the company acquired Marketeers Vietnam Co a full-service integrated marketing agency, headquartered in Ho Chi Minh City (WPP share price: Company acquires Vietnamese marketing agency).

WPP generates revenues of about $80 million in the country and employs approximately 1,000 people.
**Analysts on WPP**
The 28 analysts offering 12 month price targets for WPP for The Financial Times have a median target of 1,470p, with a high estimate of 1,600p and a low estimate of 1,100p. As of Jun 13, 2014, the consensus forecast amongst 47 polled investment analysts covering WPP advises that the company will outperform the market. The same consensus forecast has been maintained since the sentiment of investment analysts improved on Oct 16, 2009, the FT notes.
**As of 13:45 BST buy WPP shares at 1269.00 pence**
**As of 13:45 BST sell WPP shares at 1268.00 pence**

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