"The process of finding the right partner has been long and thorough," says JWT SA Group CEO, Peter Sham. "In fact, we have been looking for a suitable partner for almost six years and have had several aborted attempts and numerous approaches by interested parties.
"I felt very strongly that the right person had to be able to add value on a day-to-day basis to JWT, both internally, in assisting in the transformation role, as well as externally in client development. I wanted a BEE partner to be a person of substance and not simply a "celebrity" partner.
"I met Kenny Setzin in mid-2003 and we began serious negotiations late last year. The deal was finally signed off last week, effective as of 31 October 2004. He has a successful track record and his experience will add massive value to the company. It was also vital that there was a cultural match, that the people at JWT would accept him and work together with him
"The primary reason for the delay was selecting which funding mechanism would be used for the sale. Ultimately, our global parent company WPP, decided to provide all of the external funding. For me this is very significant, as it provides tangible evidence of support at the highest levels of our group for this very important step," says Sham
Sir Martin Sorrell, CEO of WPP, comments, "WPP welcomes this move by JWT and indeed was happy to help finance it. It is concrete evidence of the commitment to BEE that both WPP and JWT strongly share."
"Although JWT is the last major agency to become empowered, I believe that this deal has to be one of the best." says Sham.
Setzin himself, who has had operational responsibility for Nail's electronic media assets and outdoor advertising interests, says he is exhilarated.
"This is a milestone. It is not purely a BEE transaction, but a venture that will jointly grow the business. I have great confidence in the JWT team and feel confident with my investment in the company. They have the talent and creative ability to sustain the agency's track record.
"It's also worth noting that this deal means JWT South Africa has already met the ACA's Industry Charter of 30% BEE equity percentage by 2006. One of my aims in the future will be to broaden the empowerment base by accommodating other staff from a previously disadvantaged background in our equity structures," says Setzin.
"I wish to take this opportunity to convey my sincere gratitude to the management of JWT Europe and WPP for making this transaction a reality. This transaction is a clear, unequivocal demonstration of the confidence that JWT and, in particular, WPP, has in South Africa as an investment destination and the epicentre of economic growth in Africa. There is no doubting their commitment to the transformation process in South Africa.
"Apart from JWT SA being part of a global network, it remains a stable, solid South African agency, operating on sound commercial principles that are second to none in the industry. My involvement is to usher in a new era that would catapult JWT into an exciting, sustainable growth-path - expanding its South African client base," concludes Setzin.
JWT SA's multinational parent company, WPP, retains control and has increased its shareholding to 56%.
