Proactive Investors - Run By Investors For Investors

Derriston Capital shares soar as trading resumes three months after deal to acquire Sorrell’s S4 Capital

The resumption of trading comes two days after Derriston issued its interim results for the six months to June 30 which showed the firm had cash assets of over £2.1mln at the period-end
Shares rise
On 10 July, the cash shell announced that S4Capital had acquired MediaMonks Multimedia Holding BV

Derriston Capital PLC (LON:DERR) saw its shares soar higher as trading in the main market-listed cash shell resumed trading on Friday afternoon for the first time since May 30 when it announced plans to acquire S4 Capital Limited, a new company formed by former WPP PLC (LON:WPP) boss Martin Sorrell.

The resumption of trading comes two days after Derriston issued its interim results for the six months to June 30, which showed the firm record a pre-tax loss of £138,086, with cash assets of over £2.1mln at the period end. Around 2.45pm, Derriston shares were nearly 45% higher at 16.50p. 

READ: Ex-WPP boss Martin Sorrell making stock market comeback weeks after leaving advertising giant

On 10 July, the company announced that S4Capital had acquired MediaMonks Multimedia Holding BV, a Dutch digital media group which has revenues of around €110mln.

MediaMonks operates in 10 countries with clients including Adidas, Amazon, GE, Google, Hyundai, JAB, Johnson & Johnson, Netflix, 3G and Weber.

Derriston published a prospectus and circular detailing the acquisition of S4Capital on 11 September, and convened a general meeting on 27 September 2018 for shareholders to vote on the deal.

Harry Hyman, Derriston’s chairman said in Wednesday’s statement: "We are delighted to have reached agreement with S4Capital, and their merger with MediaMonks, one of the world's most exciting and progressive digital media agencies."

Sorrel to take charge

Prior to the announcement of the Derriston reverse takeover, S4 Capital completed a £51mln equity fundraising of which Sorrell contributed £40mln, with the balance of the funds coming from institutional and other investors.

Derriston is to change its name to S4 Capital PLC – which is understood to refer to four generations of the Sorrell family – with Sorrell to be appointed executive chairman of the company.

Sorrell, the driving force behind 33 years of dealmaking at WPP, stepped down as its CEO in April after the board investigated claims of misconduct.

The decision to acquire Derriston has echoes of his reverse takeover of a small listed firm, Wire and Plastics Products, then a manufacturer of shopping baskets in 1985.

View full SFOR profile View Profile

S4 Capital PLC Timeline

Related Articles

January 22 2019
The trust thinks valuations “look very attractive” in a number of healthcare sub-sectors that it invests in following a recent sell-off

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use