British giant names Scangroup CFO after share purchase

Global communications firm WPP has appointed Scangroup’s new chief financial officer, making it the firm’s first executive appointment after taking a controlling stake in the marketing services firm.

Scangroup Wednesday said that Jon Egger will replace Manish Kumar Shah as head of its cash office from January 1.

READ: Scangroup finance director Manish Kumar Shah resigns

Mr Egger has worked with WPP since 2002 and his appointment will offer the global communications firm a seat in the executive suite of Scangroup for the first time since acquiring a 27.5 per cent in the Nairobi bourse-listed firm in 2008.

The London-listed communication company raised its stake in Scangroup in October to 50.1 per cent acquiring 94 million additional shares in a cash and stock deal valued at more than Sh8 billion.

Previously, WPP has preferred to influence decisions in Scangroup from the board where it had two directors.

“Jon is an experienced and highly skilled finance and accounting professional, who will add depth and leadership to our finance team,” said Scangroup chief executive Bharat Thakrar said in a statement Wednesday.

“His prior experiences with WPP, combined with his business and financial acumen, make him a valuable member of the management team as we continue to experience tremendous growth.”

WPP said it would take more seats in the board following the share deal that gave it a controlling stake.

It signed an agreement with Mr Bharat that will see him remain the CEO, shareholder and director of a firm he helped found and brought it to the Nairobi Securities Exchange in 2006. Mr Thakrar has 18.1 per cent stake currently worth Sh2.65 billion.

READ: Scangroup buyout deal diminishes founder’s clout

The firm’s shares have shed 17.36 per cent over the past three months to Sh50 apiece.

It’s net profit for the six months of 2013 dropped 89.2 per cent to Sh43.6 million, hit by a Sh91 million operating loss in Scanad Nigeria.

The CFO change at Scangroup comes in a year when a number of firms listed on the Nairobi bourse have replaced or are still searching for a new head of finance.

National Bank hired Chris Kisire from Mumias Sugar while KCB appointed Collins Otiwu from Equity Bank as chief financial officer.

Equity Bank looked inward in June and promoted John Staley, the director of mobile banking, to the CFO position, replacing Samson Oduor who left the bank in March after serving for six months.

NIC is looking for Joseph Mutugu’s replacement after he quit as finance director in July and Mumias is also in the jobs market.