JCDecaux controls Europlakat
Now Affichage must learn how to deal with the French outdoor advertiser
Now Affichage has to learn how to deal with the French outdoor advertiserBy Markus KnöpfliThrough a majority shareholding in the Austrian outdoor advertiser Gewista, JCDecaux now calls the shots at Europlakat, in which Affichage has a 49 percent stake. Whether that suits Affichage is another matter.
Affichage is to remain Swiss - that is the reason for the share transfer restrictions in the Articles of Incorporation of Switzerland's largest outdoor advertiser. In concrete terms, even large shareholders can only register a maximum of 5 percent voting rights in the share register. The French outdoor advertiser JCDecaux, among others, felt the effects of this when it acquired a 30 percent stake in Affichage in 1999 and also demanded a seat on the Board of Directors. Until now, JCDecaux has had to make do with a meager 5 percent of the voting rights.
On the other hand, Jean-Pierre Bonny, Chairman of the Board of Affichage until last year, was open to "constructive talks with a view to a joint approach abroad". Whether this "joint approach abroad" was envisioned at Affichage in the same way as it will be at Europlakat cannot be assumed. Because JCDecaux is now calling the shots there.
Now the affichage must
Show your colors
Admittedly, Europlakat, which is active in outdoor advertising in Eastern European countries, is still 51 percent owned by the Austrian outdoor advertiser Gewista and 49 percent by Affichage. In addition, an equal cooperation agreement applies between the two partners with regard to all strategic issues.
But it should be borne in mind that Gewista is now controlled by JCDecaux, which also has the (few) voting rights in Affichage. Conclusion: The French outdoor advertiser holds a clear majority in Europlakat, not only financially but also vocally.
At present, it is still unclear whether JCDecaux's coup came as a surprise to Affichage or whether they were prepared for it in Geneva. What is certain is that Affichage will now have to cooperate with JCDecaux for the first time.
The deal was set up by JCDecaux as follows: JCDecaux and the financial investor B&C Holding are setting up a joint venture called JCDecaux Central Eastern Europe Holding (DCEE). JCDecaux will hold 58.5 percent of DCEE, B&C 41.5 percent. B&C, which holds a 51 percent stake in Gewista, will contribute this share to the new holding company, as will JCDecaux, which holds 16 percent of Gewista shares. JCDecaux is also contributing its 30 percent stake in Affichage.
Europlakat is currently still of small but growing importance for Affichage: in 1999, just four years after its founding, the company brought in 25 million Swiss francs for the Swiss outdoor advertiser, which corresponded to 9 percent of Group sales and around 3 percent of Group profit. Last year, Affichage's share of Eastern European sales revenue actually grew to 27.8 million Swiss francs, an increase of 11.1 percent.
Weko decides on May 7 - perhaps
Affichage is to remain Swiss - that is the reason for the share transfer restrictions in the Articles of Incorporation of Switzerland's largest outdoor advertiser. In concrete terms, even large shareholders can only register a maximum of 5 percent voting rights in the share register. The French outdoor advertiser JCDecaux, among others, felt the effects of this when it acquired a 30 percent stake in Affichage in 1999 and also demanded a seat on the Board of Directors. Until now, JCDecaux has had to make do with a meager 5 percent of the voting rights.
On the other hand, Jean-Pierre Bonny, Chairman of the Board of Affichage until last year, was open to "constructive talks with a view to a joint approach abroad". Whether this "joint approach abroad" was envisioned at Affichage in the same way as it will be at Europlakat cannot be assumed. Because JCDecaux is now calling the shots there.
Now the affichage must
Show your colors
Admittedly, Europlakat, which is active in outdoor advertising in Eastern European countries, is still 51 percent owned by the Austrian outdoor advertiser Gewista and 49 percent by Affichage. In addition, an equal cooperation agreement applies between the two partners with regard to all strategic issues.
But it should be borne in mind that Gewista is now controlled by JCDecaux, which also has the (few) voting rights in Affichage. Conclusion: The French outdoor advertiser holds a clear majority in Europlakat, not only financially but also vocally.
At present, it is still unclear whether JCDecaux's coup came as a surprise to Affichage or whether they were prepared for it in Geneva. What is certain is that Affichage will now have to cooperate with JCDecaux for the first time.
The deal was set up by JCDecaux as follows: JCDecaux and the financial investor B&C Holding are setting up a joint venture called JCDecaux Central Eastern Europe Holding (DCEE). JCDecaux will hold 58.5 percent of DCEE, B&C 41.5 percent. B&C, which holds a 51 percent stake in Gewista, will contribute this share to the new holding company, as will JCDecaux, which holds 16 percent of Gewista shares. JCDecaux is also contributing its 30 percent stake in Affichage.
Europlakat is currently still of small but growing importance for Affichage: in 1999, just four years after its founding, the company brought in 25 million Swiss francs for the Swiss outdoor advertiser, which corresponded to 9 percent of Group sales and around 3 percent of Group profit. Last year, Affichage's share of Eastern European sales revenue actually grew to 27.8 million Swiss francs, an increase of 11.1 percent.
Weko decides on May 7 - perhaps
Since 1999, the Competition Commission (Comco) has been investigating whether JCDecaux's 30 percent stake in Affichage "qualifies as an agreement under competition law". On May 7, the Weko will now issue a decision at the request of its secretariat. What the application will contain is being kept under wraps. However, it is by no means certain that the case will now be brought to a conclusion after a good year and a half. It is also possible that the Weko will continue to investigate the case.
