Chime confirms talks with Providence and WPP

In a short statement, Chime Communications said it was in talks with WPP and Providence on a potential cash offer for the entire business for 365 pence per share, plus a 2.53 pence interim dividend.

The bid is a 33pc premium to Chime’s closing price of 274.5p on Wednesday.

An independent committee of the Board of Chime has been convened who are engaged in discussions with the consortium. The company also noted that in accordance with UK financial regulations WPP and Providence have until August. 26 to make a firm bid for the company or declare that it isn’t going to proceed. “A further announcement will be made in due course”.

Chime, which counts Lord Coe as a director and executive chairman of its sports and entertainment division, has history with WPP stretching back more than a decade.

WPP is the world’s biggest marketing holding group, which in Australia owns agencies including MEC, Mediacom, JWT, George Patterson Y&R and Mindshare, and already holds an approximate 18 per cent share in Chime Communications.