A shell company, Derriston Capital will become the vehicle for Sir Martin Sorrell ’s new advertising venture, S4 Capital.
“There are significant opportunities for development in technology, data and content. I look forward to making this happen,” added Sir Martin, who will be executive chairman of S4 Capital’’, said the former WPP Chief.
According to him, S4 Capital aims to build a “multi-national communication services business”.
Sorrell is to take 75% control of Derriston Capital, taking the post of executive chairman, with the aim of building a next-generation WPP for the digital age.
Sir Sorrell disclosed that he is in takeover talks with a number of companies as he looks to rebuild an international marketing business, weeks after he was forced out of WPP following allegations of personal misconduct.
Almost immediately after Sorrell was forced to stand down in April, having run the world’s biggest ad group for more than three decades, he began talks to stage his comeback.
On Wednesday, he delivered on his promise that it would be a case of “back to the future” – as he had hinted in a resignation letter to WPP staff last month – detailing a reverse takeover of another small listed company to use as a vehicle to rebuild his empire.
Derriston, which began talks with Sorrell in May, will change its name to S4 Capital. Sorrell incorporated S4 Capital, a reference to four generations of his family, in Jersey on 22 May, with £40m of his money and £11m from other investors.
A number of those investors have also signed “non-binding letters of support” to provide in principle more than £150m of further funding to fuel Sorrell’s acquisition plans.
Recalled that the former WPP boss stepped down from his exalted position as Chief Executive Officer following an internal probe into misconduct, ending a 33-year career at the world’s largest agency holding company.
The company later announced that WPP Chairman Roberto Quarta would take over as executive chairman until a new CEO is appointed.
With Agency Reports