WPP AUNZ has a received an unsolicited proposal from its majority shareholder WPP to acquire all of the ordinary shares in WPP AUNZ that it does not already own at a price of A$0.55 per share in cash.

WPP, which currently owns 61.5% of the issued capital in WPP AUNZ, has reserved the right to withdraw the proposal at any time prior to a deal being done.

The Independent Directors of WPP AUNZ, along with its advisers, are considering the proposal and shareholders are advised to take no action in relation to WPP proposal until they receive the Independent Directors' formal recommendation.

WPP AUNZ will update shareholders, in accordance with the company's continuous disclosure obligations, in due course.

WPP AUNZ has appointed UBS as its financial adviser and Herbert Smith Freehills as its legal adviser.

From a planning perspective, WPP is seeking to enter into a binding implementation agreement prior to 31 December 2020.

Based on this timing, the business expects completion of the acquisition and payment to minority shareholders by March 2021.

"WPP AUNZ has a portfolio of leading brands in the Australasian region but we remain cautious of the environment and agree with the sentiment of WPP AUNZ CEO Jens Monsees regarding the current level of economic uncertainty in the regions in which WPP AUNZ operates and we are mindful of the weak trading conditions currently impacting WPP AUNZ," WPP stated.

"As a 61.5% majority shareholder and a partner in many of WPP AUNZ's businesses, we remain committed to WPP AUNZ, however, our ability to deploy resources and assist the business is limited by the current shareholding structure. We believe that we are best able to support WPP AUNZ in maximising its potential by moving to 100% ownership."