Tihama extends completion of J. Walter Thompson-Wunderman merger to June 30

Logo of Tihama Advertising and Public Relations Co. (TAPRCO)

Tihama Advertising and Public Relations Co. announced that partners agreed to extend the deadline for completing the legal ownership transfer and obtaining all necessary regulatory approvals for the merger of Tihama’s associate J. Walter Thompson (JWT) MENA with Wunderman MENA to June 30, 2024.

The company attributed the deadline extension to the completion of the legal ownership transfer and all other required regulatory approvals, according to a statement to Tadawul.

Any financial impact resulting from the transaction based on assets and liabilities will be recorded upon completion, and any potential impact cannot be reliably estimated at present, the statement added.

In June 2021, the advertising firm signed an agreement with WPP plc on the merger of J. Walter Thompson MENA with Wunderman MENA to establish Wunderman Thompson MENA, according to data available on Argaam.

Tihama will hold 25% of Wunderman Thompson MENA after completing the transfer of legal ownership and other required regulatory approvals. Tihama's share in Wunderman Thompson MENA's financial results will be recognized as an associate in the financial statements.

The agreements were subject to the completion of the transfer of legal ownership and all other required regulatory approvals before Dec. 31, 2021.

The deadline was subsequently extended to June 30, 2022, then further extended in July 2022 to Sept. 30, 2022, then to Oct. 31 and Dec. 31, 2022.

In January 2023, it was extended to Feb. 28, 2023, then extended again to May 31, 2023, and further extended to June 30, 2023. The most recent extension sets the deadline for Dec. 31, 2023.