Sir Martin Sorrell is making a pending return to London stock market through Derriston Capital, a company which multiple media outlets such as BBC and Sky News term a “cash shell”. According to its website, Derriston Capital was initially founded to consider opportunities within the global medical technology industry.
The news was first reported by Sky News, which added that Sorrell will likely take on the role as Derriston’s executive chairman. This is after the acquisition of S4 Capital, a new entity established by Sorrell, which had raised £51 million in equity funds, with Sorrell contributing £40 million. Meanwhile, institutional investors provided £11 million to become shareholders in Derriston. After the deal concludes, Derriston Capital will become S4 Capital, media reports added.
The Sky News report added that other backing investors include Lombard Odier, Miton, Lord Rothschild's RIT Capital Partners, Schroders and Toscafund. It also named Dowgate Capital, as an expected shareholder.
Earlier this month, Sorrell promised to “start again” after his exit from the WPP network. According to the Financial Times (FT), Sorrell described his departure as being “extracted” from the network and that he is “not going into voluntary or involuntary retirement”.
Multiple media reports, including FT and Adweek, said that WPP did not “impose” a non-compete clause on Sorrell when he left, providing him with the opportunity to become a direct competitor to WPP. He headed up WPP for over 33 years, and last month, in an alarming move, left the industry due to allegations of personal misconduct. Reasons were however not disclosed, and Sorrell rejected the claims
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