Tihama says ownership transfer period for Wunderman MENA-J Walter merger extended to Feb. 28

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. agreed with partners to extend the period of completing the legal ownership transfer and other regulatory approvals for the merger of J Walter Thompson MENA (an associate of Tihama) with Wunderman MENA to create Wunderman Thompson MENA EC to Feb. 28. 

In a statement to Tadawul, Tihama said it is currently difficult to expect the completion date of the ownership transfer or the costs arising from the delay.

Any financial impact and other material updates will be announced later.

The ownership transfer process was 95% complete, and Tihama is finalizing the related paperwork, 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, according to 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 agreement was subject to the completion of the transfer of legal ownerships and all other required regulatory approvals before Dec. 31, 2021. 

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