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WPP to sell stake in NYSE-listed Globant
WPP is selling its 18.7% stake in New York-listed digital specialist Globant as its looks to focus the business after the controversial exit of ex-boss Sir Martin Sorrell.
WPP has told its brokers to try and flog its 5,815,259 shares in of Latin American software group Globant, which are held by the WPP's Luxembourg subsidiary Gamma Three. Globant's stock price closed at just over $57 on the previous day, which would see the sale gross $331m.
"Following WPP's recent review of its minority investments, it has decided to sell its remaining stake in Globant," the FTSE 100 group said on Wednesday.
WPP Luxembourg, which built up the stake since 2012 and was topped up during its New York IPO in 2014, has granted the underwriters an option to purchase an additional 872,289 common shares of Globant at the public offering price.
None of Globant, its management or any of its other shareholders is offering any common shares, and Globant will not receive any proceeds from the sale of the common shares offered.
"Since our initial investment, Globant has experienced significant growth and has twice been named a worldwide leader in digital strategy consulting services," said Andrew Scott, joint chief operating officer of WPP, adding that the company would continue its business relationship with Globant.
Globant's stock price was down more than 6% to $53.45 in early trading on Wall Street.