Aegis expands its Chinese business with Charm partnership

Marketing communications group Aegis Group (LSE: AGS) is extending its reach in China through a deal with Chinese advertising-agency Charm Communications. Aegis acquired a 17.7% stake in the advertising company and will establish a joint venture to give Charm’s Chinese clients access to its international media network. The FTSE250 constituent expects the partnership to deliver strong growth in the People’s Republic of China.

Aegis will initially own 40% of the JV, which it can increase to 100% through incremental options dated up to 2024. Initial revenues will come from the combination of the Vizeum business and Charm’s local clients. The joint venture will be named Vizeum China.

"This deal significantly extends our Chinese operations and will further transform our prospects in this exciting and dynamic market,” said Aegis Media chief executive Jerry Buhmann, “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."

Charm was established in 1995 and has gross assets of US$143m. The company is one of the largest advertising brokers to China Central Television (CCTV), which controls nine of China's top 10 television channels.  http://www.proactiveinvestors.co.uk/companies/news/12579/aegis-expands-its-chinese-business-with-charm-partnership-12579.html