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| Bell Pottinger investor walks away as South Africa row deepens | Bell Pottinger investor walks away as South Africa row deepens |
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| Bell Pottinger’s second-largest shareholder has walked away from the business by writing off its investment and handing back its stake to the struggling PR firm. | Bell Pottinger’s second-largest shareholder has walked away from the business by writing off its investment and handing back its stake to the struggling PR firm. |
| Chime, co-owned by US investment firm Providence Equity Partners and Sir Martin Sorrell’s WPP group, has given up trying to sell its 27% holding after a scandal over a Bell Pottinger campaign in South Africa severely damaged the agency. On Monday, the British PR trade body expelled Bell Pottinger from its ranks after the firm orchestrated a campaign to stir up anger about “white monopoly capital” and “economic apartheid” for one of South Africa’s wealthiest and most controversial families. | Chime, co-owned by US investment firm Providence Equity Partners and Sir Martin Sorrell’s WPP group, has given up trying to sell its 27% holding after a scandal over a Bell Pottinger campaign in South Africa severely damaged the agency. On Monday, the British PR trade body expelled Bell Pottinger from its ranks after the firm orchestrated a campaign to stir up anger about “white monopoly capital” and “economic apartheid” for one of South Africa’s wealthiest and most controversial families. |
| “We no longer have a stake in Bell Pottinger,” confirmed a spokesman for Chime. | “We no longer have a stake in Bell Pottinger,” confirmed a spokesman for Chime. |
| As Chime is a minority shareholder in the PR agency, its stake, which is thought to have been valued at about £5m, will be written down as a non-cash charge on its balance sheet. | As Chime is a minority shareholder in the PR agency, its stake, which is thought to have been valued at about £5m, will be written down as a non-cash charge on its balance sheet. |
| Bell Pottinger’s 'economic emancipation' campaign used traditional and social media, including a fake blog and Twitter account, to target wealthy white South African individuals and corporations. The agency’s alleged role was to stir up anger about 'white monopoly capital' and 'economic apartheid' to draw attention away from the wealthy Gupta family, who have been accused of benefiting financially from their links to President Jacob Zuma. Bell Pottinger, which created and commissioned content, did not invent 'white monopoly capital' but used the term 'on occasion'. It also used other tactics, such as misleading or undermining journalists questioning the campaign. | Bell Pottinger’s 'economic emancipation' campaign used traditional and social media, including a fake blog and Twitter account, to target wealthy white South African individuals and corporations. The agency’s alleged role was to stir up anger about 'white monopoly capital' and 'economic apartheid' to draw attention away from the wealthy Gupta family, who have been accused of benefiting financially from their links to President Jacob Zuma. Bell Pottinger, which created and commissioned content, did not invent 'white monopoly capital' but used the term 'on occasion'. It also used other tactics, such as misleading or undermining journalists questioning the campaign. |
| The move is the latest blow to Bell Pottinger in the wake of its expulsion from the Public Relations and Communications Association (PRCA). The group has already lost three clients: Richemont, the Swiss luxury company headed by South African businessman Johann Rupert; Investec, the South African investment group; and Acacia, which owns gold mines in Tanzania. | The move is the latest blow to Bell Pottinger in the wake of its expulsion from the Public Relations and Communications Association (PRCA). The group has already lost three clients: Richemont, the Swiss luxury company headed by South African businessman Johann Rupert; Investec, the South African investment group; and Acacia, which owns gold mines in Tanzania. |
| Further uncertainty over Bell Pottinger’s future was fuelled when its largest shareholder, James Henderson, resigned as chief executive on Sunday. | Further uncertainty over Bell Pottinger’s future was fuelled when its largest shareholder, James Henderson, resigned as chief executive on Sunday. |
| Lord Bell, who resigned from the company that he co-founded last summer, told Newsnight he thought it was “almost certain” the company he co-founded would not survive the scandal. | Lord Bell, who resigned from the company that he co-founded last summer, told Newsnight he thought it was “almost certain” the company he co-founded would not survive the scandal. |
| “I think that it is probably getting near the end, I mean you can try and rescue it but it won’t be very successful,” he said. | “I think that it is probably getting near the end, I mean you can try and rescue it but it won’t be very successful,” he said. |
| Lord Bell agreed a £20m deal to buy the Bell Pottinger branded PR businesses from Chime, its publicly-listed parent company, in 2012. | |
| Chime was taken private by Providence, which owns a majority stake, and WPP in a £374m deal in 2015. | |
| Chime took part in Bell’s management buyout by taking a 27% stake that helped support the launch of the independent Bell Pottinger business. Bell Pottinger is known to have appointed City advisers up to 18 months ago to explore strategic options, including a sale of the business, but this fizzled out last year. | Chime took part in Bell’s management buyout by taking a 27% stake that helped support the launch of the independent Bell Pottinger business. Bell Pottinger is known to have appointed City advisers up to 18 months ago to explore strategic options, including a sale of the business, but this fizzled out last year. |
| Bell Pottinger, which is ranked as the 13th biggest PR consultancy in the UK employing an estimated 190 staff, made about £4m in profits and £42m in revenues in 2015, according to the most recent publicly available financial data at Companies House. It is thought that the business has maintained roughly this level of revenues and profits since then. | Bell Pottinger, which is ranked as the 13th biggest PR consultancy in the UK employing an estimated 190 staff, made about £4m in profits and £42m in revenues in 2015, according to the most recent publicly available financial data at Companies House. It is thought that the business has maintained roughly this level of revenues and profits since then. |