Tihama extends agreement with WPP to set up new firm until Dec. 31

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. extended the agreement with WPP Group to establish “ICG Saudi Arabia”, a new company, in Saudi Arabia. 

The company said, in a bourse filing, that the extension will include the completion of transferring legal ownership and obtaining all other required regulatory approvals before Dec. 31.  

The move came due to a modification in the structure of the agreement so that United Advertising Co. becomes the new holding company. WPP will transfer some of its owned companies to United Advertising. On the other hand, Tihama will waive 20% of its ownership in United Advertising to WPP.  

Post-completion, Tihama will hold 30% of United Advertising. 

Any financial impact will be recorded based on assets and liabilities on that date upon the deal conclusion, Tihama explained, ruling out the possibility of estimating any reliable impact at present. 

According to data compiled by Argaam, Tihama entered into an agreement, on June 30, 2021, with WPP to create a new joint venture called ICG Saudi Arabia. The agreement was extended until June 30.