Aegis Media to buy Mitchell’s

29 July 2010

Aegis Media is set to purchase Australia’s largest media buying company Mitchell Communication Group in a deal believed to the worth $363m, according to published reports.

The board of the company has approved the deal which will see shareholders have the option of selling their shares for $1.20 in cash per share or acquire Aegis shares or a combination of the two.

The company was founded in 1976 by the Mitchell family, which still owns 40% of the company. It is understood that the family will take its entire holding in Aegis shares and has agreed to not sell 85% of them for a minimum of 24 months from the date that they are issued.

According to the Australia’s Herald Sun, Harold Mitchell will stay with the company once the acquisition is complete taking the role of chairman.

Martina Lacey, London