ScanGroup's 50% stake in RedSky

Just for our records, I have copied and pasted this from Dyer & Blair's website.
"SCANGROUP ACQUIRES 50% STAKE IN REDSKY

Scangroup Limited has acquired a 50% stake in Redsky, a local advertising company. It has also entered into a further agreement to acquire a further 35% of Redsky subject to no regulatory approvals being required, according to the Chairman of the Board of Directors, Mr. David Hutchison.

The deal holds the following synergies for both groups:

For Scangroup:
Redsky’s client mix includes firms in sectors in which Scangroup has had no significant presence such as the telecommunication and automotive industries.
Redsky is the advertising agency for Safaricom. Mobile telephone operators in Kenya today have the largest advertising budgets. Indeed, Celtel and Safaricom have had a combined advertising exposure of over Kshs.1.3Bn in 2006 according to Steadman & Associates.

For Redsky: Redsky benefits from Scangroup’s regional presence, media buying and planning expertise across several African markets, allowing their clients to tap into public relations, event management & experiential marketing expertise from Scangroup.

Additional information: Redsky was formed in 2005 by Lynda Holt and handles advertising for: Safaricom, Beiersdorf, DT Dobie, Stanbic Bank and Sara Lee.

Scangroup Limited is the first marketing services company to be quoted on the NSE and is holding company for advertising agencies Lowe Scanad Kenya, Uganda & Tanzania, Thompson Kenya and Grey East Africa, McCann Kenya, FCB Tanzania, media planning and buying companies Media Initiative East Africa and Universal McCann, public relations company Scanad Public Relations and event management and experiential marketing company Draft Worldwide.

As part of the acquisition, Mr. Hutchison and Mr. Thakrar will be nominated to the Board of Redsky which Mr. Hutchison will chair. Other directors include Lynda Holt and Erik Van Vliet the Creative Director of Redsky."

Of note, is the fact that McCann is already part of ScanGroup, however as several of you mentioned, it will only be a good deal if ScanGroup can keep RedSky' staff happy so as to keep the client accounts.