According to a report in Sky News, long-serving WPP chief executive Martin Sorrell is set to become chairman of a little known financial holding company, Derriston Capital, just six weeks after stepping down from the world’s largest advertiser. Derriston Capital is a cash shell company meaning it is a company that does not quite meet the definition of a shell company, but whose main value nonetheless lies in its listing rather than its assets or its business. The company is already listed in the London Stock Exchange.
Sorrell will become the executive chairman of Derriston Capital Plc with the company agreeing to acquire Sorrell’s newly established entity, S4 Capital. S4, which will replace Derriston as the company’s name, is understood to refer to four generations of Sir Martin’s family.
Sky News has reported that Sorrell himself will be investing £40m ($61.56) of his own money while investors will provide an addition £11m ($16.93) to become shareholders in Derriston Capital PLC. He will use it as a vehicle to build a “next-generation” marketing services group.
The backers of his plan include Lombard Odier, Miton, Lord Rothschild’s RIT Capital Partners, Schroders and Toscafund.
By taking over Derriston, Sir Martin will have embarked upon an explicit attempt to replicate the success he enjoyed at Wire and Plastic Products (WPP), where he became chief executive in 1986 before acquiring some of the world’s most famous advertising agency networks.
Sorrell, the driving force behind 33 years of dealmaking and relentless expansion at WPP, stepped down on April 14 after the board investigated an allegation of misconduct.
Derriston Capital Plc has been created to consider opportunities within the global medical technology industry. In particular, the initial focus will be to acquire one or more companies operating in the medical products and devices sector, as the directors believe that a number of dynamics have combined in the last decade or so to create significant change and opportunity within the global medical device market. It was founded in 2016. Harry Hyman is the founder and managing director of the company.
