WPPLN                    Baa2/BBB                           EUR Spreads Muted

WPP average adjusted EBITDA leverage was 1.84x as of 30 June though the proceeds from their agreed sale of FGS Global would see a pro-forma ratio of c.1.6x against a target of 1.5-1.75x. GBP 400mn of proceeds from this deal corresponds to ~0.22x turns of leverage though the report makes no mention of how proceeds could be distributed or used.

• The Times reported over the weekend that Kantar Media, valued at GBP 1bn, is up for sale with private equity firms Cinven and Triton Partners among bidders. Sale may precede a larger multibillion-pound divestiture of the Kantar Group.
• Kantar Media, operating in 62 countries, generates TV and provides media analytics. It holds an 8-year UK contract with the Broadcasters Audience Research Board signed in 2021.
• WPP, owning 40% of Kantar, and Bain Capital, holding 60%, are spearheading the process. WPP originally sold the majority stake in 2019 for GBP 3.2bn. 60% of the net proceeds were retained to deleverage with the balance returned to shareholders.