The poster engagement
JCDecaux and Affichage are investing 100 million francs in Eastern Europe
JCDecaux and Affichage invest 100 million francs in Eastern EuropeBy Markus knöpfli The Affichage holding company grants its largest shareholder, the outdoor advertising company JCDecaux, more say in the form of a seat on the board of directors. In return, the two out-of-home advertisers in Eastern Europe are reorganizing their cooperation at Europlakat and investing CHF 100 million.
Affichage-Holding, the Swiss number one in out-of-home advertising and number six worldwide, has overcome its initial aloofness towards JCDecaux, the European number one in out-of-home advertising and number three worldwide. Together, the two groups are now building a partnership in which they also grant each other more rights.
On the one hand, JCDecaux, which holds a 30% stake in Affichage via JCDecaux Central Eastern Europe Holding, will receive the required seat on the Affichage Board of Directors (BoD) - provided that the Affichage General Meeting approves a corresponding proposal on May 29. However, Affichage is sticking to the transfer restriction clause, which allows an individual shareholder a maximum of 5% of the voting rights.
On the other hand, the billposters are reorganizing their joint Eastern European business at Europlakat International (EPI). Affichage is a partner of Gewista, Austria's largest outdoor advertising company, whose main shareholder is JCDecaux (see chart). Previously, Gewista held 51% and Affichage 49% in EPI, but had equal voting rights. Affichage and Gewista now each hold half of EPI. In addition, they agreed to invest CHF 100 million over the next five years.
Part of this money is needed to integrate some of JCDecaux's Eastern European subsidiaries into EPI. The investments are also intended to accelerate growth in countries such as Hungary, Slovakia, Croatia, Bosnia, Macedonia, Bulgaria and Serbia. Conversely, EPI is withdrawing from Poland, where it lost around four million Swiss francs in 2001.
New heads on the Affichage Board of Directors
Affichage-Holding, the Swiss number one in out-of-home advertising and number six worldwide, has overcome its initial aloofness towards JCDecaux, the European number one in out-of-home advertising and number three worldwide. Together, the two groups are now building a partnership in which they also grant each other more rights.
On the one hand, JCDecaux, which holds a 30% stake in Affichage via JCDecaux Central Eastern Europe Holding, will receive the required seat on the Affichage Board of Directors (BoD) - provided that the Affichage General Meeting approves a corresponding proposal on May 29. However, Affichage is sticking to the transfer restriction clause, which allows an individual shareholder a maximum of 5% of the voting rights.
On the other hand, the billposters are reorganizing their joint Eastern European business at Europlakat International (EPI). Affichage is a partner of Gewista, Austria's largest outdoor advertising company, whose main shareholder is JCDecaux (see chart). Previously, Gewista held 51% and Affichage 49% in EPI, but had equal voting rights. Affichage and Gewista now each hold half of EPI. In addition, they agreed to invest CHF 100 million over the next five years.
Part of this money is needed to integrate some of JCDecaux's Eastern European subsidiaries into EPI. The investments are also intended to accelerate growth in countries such as Hungary, Slovakia, Croatia, Bosnia, Macedonia, Bulgaria and Serbia. Conversely, EPI is withdrawing from Poland, where it lost around four million Swiss francs in 2001.
New heads on the Affichage Board of Directors
At the Affichage AGM, three people will be leaving the ten-member Affichage Board of Directors. In addition to Christian Brückner and Gilles Colomb, Eric Honegger, the former Chairman of the Board of Directors of SAir Group, will also be stepping down. Jean-François Decaux, Co-CEO of JCDecaux, Jean-Claude Marchand, CEO of Edipresse, and the Bernese lawyer Klaus Hug are the new nominees.
