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BRIEF-WPP To Sell 60% Of Kantar To Bain Capital

July 12 (Reuters) - WPP PLC:

* PROPOSED SALE OF 60% OF KANTAR

* WPP LEVERAGE TARGET TO BE MET A YEAR AHEAD OF PLAN; C.£1.0BN SHAREHOLDER RETURN PLANNED

* INVESTMENT BY BAIN CAPITAL PRIVATE EQUITY VALUES KANTAR AT C.$4.0BN

* WPP LEVERAGE TARGET TO BE MET A YEAR AHEAD OF PLAN; C.£1.0BN SHAREHOLDER RETURN PLANNED

* PROCEEDS TO WPP ON COMPLETION AFTER TAX AND CONTINUING INVESTMENT IN KANTAR EXPECTED TO BE C.$3.1BN

* IMPACT OF PROPOSED TRANSACTION AND USE OF PROCEEDS EXPECTED TO BE MARGINALLY DILUTIVE TO HEADLINE EPS IN 2021

* POTENTIAL VALUE UPSIDE FOR WPP SHAREHOLDERS FROM 40% EQUITY STAKE IN KANTAR

* TO RETAIN C.60% OF NET PROCEEDS FROM DEAL TO REDUCE DEBT TO LOW END OF TARGET LEVERAGE RANGE OF 1.5 - 1.75X AVERAGE NET DEBT/EBITDA FOR 2020

* IMPACT OF PROPOSED TRANSACTION AND USE OF PROCEEDS EXPECTED TO BE MARGINALLY DILUTIVE TO HEADLINE EPS IN 2021

* EQUITY VALUE OF DEAL AFTER EXPECTED COMPLETION ADJUSTMENTS IS C.$3.7BN (C.£3.0BN)

* COMPLETION AND ASSOCIATED PROCEEDS RELATING TO NO LESS THAN 86% OF KANTAR EXPECTED IN EARLY 2020

* AFTER DEAL COSTS, TAX & WPP'S CONTINUING INVESTMENT OF C.$0.4BN TO OWN 40% OF EQUITY IN KANTAR, NET CASH PROCEEDS TO WPP EXPECTED TO BE C.$3.1BN

* WPP MAY RECEIVE CERTAIN OTHER PAYMENTS DURING LIFE OF ITS PARTNERSHIP WITH BAIN CAPITAL

* MAY GET ADDITIONAL CONSIDERATION OVER NEXT 3 YEARS IN RESPECT OF SOME CONTINGENT LIABILITIES, IF SUCH LIABILITIES ARE LOWER THAN ESTIMATED

* COMPLETION (AND ASSOCIATED PROCEEDS) RELATING TO A LARGE MAJORITY OF KANTAR'S OPERATIONS IS EXPECTED IN EARLY 2020

* WPP'S DIVIDEND POLICY WILL REMAIN UNCHANGED AS A RESULT OF TRANSACTION

* IMPACT OF PROPOSED TRANSACTION AND USE OF PROCEEDS IS EXPECTED TO BE MID SINGLE DIGITS % DILUTIVE TO HEADLINE EARNINGS PER SHARE IN 2020

* BALANCE OF PROCEEDS OF C.$1.2BN (C.£1.0BN) TO BE RETURNED TO SHAREHOLDERS

* COMPLETION AND ASSOCIATED PROCEEDS RELATING TO NO LESS THAN 86% OF KANTAR EXPECTED IN EARLY 2020 Source text for Eikon: Further company coverage:

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