Aegis to use Charm offensive on China

Advertising giant Aegis today grabbed a foothold in the fast-growing Chinese market by taking a 17.7 per cent stake in TV buying agency Charm Communication.

Charm, with estimated gross assets of $143 million (£88.5 million), is one of the main agencies dealing with Chinese state TV, which controls nine of the country's top television channels.

Aegis's Vizeum subsidiary is also launching a joint venture with Charm which will be called Vizeum China.

Under the terms of the deal, Aegis will initially have a 40 per cent stake in Vizeum China, with a plan to take 100 per cent control by 2024.

Jerry Buhlmann, chief executive of Aegis Media, said: "This deal significantly extends our Chinese operations [in] the world's second-largest advertising spending market."

Aegis shares, up 46 per cent in the last 12 months, fell 0.85 per cent to 116.8p.