M&C Saatchi has confirmed that it is in the process of transferring ownership of the New Zealand arm of the company to local management.
The official handover period has been scheduled for July, when details of the new ownership deal will become officially binding on both parties.
According to company’s current status on the Companies Office, joint chief executives Tony Burt and Dave King each hold 120 shares in the company (6.7 percent), while M&C Saatchi International Holdings, the agency’s head office located in London, holds the remaining 1560 shares (86.7 percent).
At this stage, it’s still unclear how the changes will affect the agency’s business structure, the extent of its independence or name, but a spokesperson from the M&C Saatchi head office says further details will be released when the handover is made official in July.
The M&C Saatchi head office has attributed the decision to make this change to the New Zealand arm’s weak performance in recent years.
“The business in New Zealand has been struggling to achieve its targets, hence why we have taken this action,” says the spokesperson.
Burt and King were contacted to respond in regard to this assessment, but they have thus far not been willing to comment on any of the changes that are taking place.
M&C Saatchi will retain control of the business until all details are finalised, but it is thought that the changes will not affect the day-to-day functioning of the agency in the sense that all clients will be moved across to the local agency.